Benzinga | Feb 11, 2021 10:18AM EST

Analyzing Standard Motor Products's Ex-Dividend Date

On February 1, 2021, Standard Motor Products (NYSE:SMP) declared a dividend payable on March 1, 2021 to its shareholders. Standard Motor Products also announced that shareholders on the company's books on or before February 16, 2021 are entitled to the dividend. The stock will then go ex-dividend 2 business day(s) before the record date. Standard Motor Products, whose current dividend payout is $0.35, has an ex-dividend date set at February 12, 2021. The payout equates to a dividend yield of 3.57% at current price levels.

What Are Ex-Dividend Dates?

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. Most ex-dividend dates operate on a quarterly basis.

Standard Motor Products's Dividend Performance

Over the past year, Standard Motor Products has experienced an overall upward trend regarding its dividend payouts and yields. Last year on August 14, 2019 the company's payout was $0.23, which has since grown by $0.12. Similarly, Standard Motor Products's dividend yield in last year was 2.0%, which has since grown by 1.57%.

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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