Benzinga | Feb 5, 2021 10:18AM EST

Understanding HomeStreet's Ex-Dividend Date

HomeStreet (NASDAQ:HMST) declared a dividend payable on February 24, 2021 to its shareholders as of January 29, 2021. It was also announced that shareholders of HomeStreet's stock as of February 9, 2021 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. HomeStreet, which has a current dividend per share of $0.25, has an ex-dividend date scheduled for February 8, 2021. That equates to a dividend yield of 2.76% at current price levels.

The Significance Of An Ex-Dividend Date

Ex-dividend dates are when company shares stop trading with their current dividend payouts in preparation for those companies to announce new ones. Usually, a company's ex-dividend date falls one business day before its record date. Investors should keep this in mind when purchasing stocks because buying them on or after ex-dividend dates does not qualify them to receive the declared payment. Newly declared dividends go to shareholders who have owned that stock before the ex-dividend date. Typically, companies will announce and implement new dividend yields on a quarterly basis.

Understanding HomeStreet's Dividend Payouts And Yields

Over the past year, HomeStreet has seen its dividend payouts and yields climb upward overall. Last year (February 4, 2020), the company's payout sat at $0.15, which has since increased by $0.1. HomeStreet's dividend yield last year was 1.84%, which has since grown by 0.92%.

Companies use dividend yields in different strategic ways. Some companies may opt to not give yields altogether to reinvest in themselves. Other companies may opt to increase or decrease their yield amounts to control how their shares circulate throughout the stock market.

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