Benzinga | Feb 22, 2021 10:15AM EST

Understanding Equinix's Ex-Dividend Date

On February 10, 2021, Equinix (NASDAQ:EQIX) declared a dividend payable on March 17, 2021 to its shareholders. Equinix also announced that shareholders on the company's books on or before February 24, 2021 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. Equinix has an ex-dividend date set for for February 23, 2021. The company's current dividend payout is $2.87, which equates to a dividend yield of 1.53% at current price levels.

What Is An Ex-Dividend Date?

An ex-dividend date is when a company's shares stop trading with its current dividend payout in preparation for the company to announce a new one. 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.

Equinix's Dividend Payouts And Yields

Over the past year, Equinix has seen its dividend payouts climb upward and its yields trend downward. Last year on February 25, 2020 the company's payout sat at $2.66, which has since increased by $0.21. Equinix's dividend yield last year was 1.73%, which has since decreased by 0.2%.

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 Equinix's previous dividends.