Benzinga | Feb 15, 2021 10:33AM EST

Understanding MGIC Investment's Ex-Dividend Date

On January 26, 2021, MGIC Investment (NYSE:MTG) announced shareholders can expect to receive a dividend payable on March 3, 2021. The stock will then go ex-dividend 1 business day(s) before the record date. MGIC Investment, whose current dividend payout is $0.06, has an ex-dividend date set at February 16, 2021. The payout equates to a dividend yield of 1.92% at current price levels.

What Are Ex-Dividend Dates?

Ex-dividend dates signal when company shares cease to trade with their current dividend payouts. There is a small intermission period before companies announce new dividends. 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 MGIC Investment's Dividend Payouts And Yields

Over the past year, MGIC Investment has seen its dividend payouts remain the same and its yields climb upward overall. Last year on February 10, 2020 the company's payout sat at $0.06, which has returned to its value today. MGIC Investment's dividend yield last year was 1.76%, which has since grown by 0.16%.

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.

Click here to find details on MGIC Investment's previous dividends.