Benzinga | Dec 16, 2020 10:18AM EST

Ex-Dividend Date Insight: Advance Auto Parts

Advance Auto Parts (NYSE:AAP) declared a dividend payable on January 4, 2021 to its shareholders as of October 26, 2020. It was also announced that shareholders of Advance Auto Parts's stock as of December 18, 2020 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. The ex-dividend date for Advance Auto Parts is set for December 17, 2020. The company's current dividend payout sits at $0.25, equating to a dividend yield of 0.65% at current price levels.

What Are Ex-Dividend Dates?

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.

Advance Auto Parts's Dividend Performance

Over the past year, Advance Auto Parts has seen its dividend payouts and yields climb upward overall. Last year (December 19, 2019), the company's payout sat at $0.06, which has since increased by $0.19. Advance Auto Parts's dividend yield last year was 0.14%, which has since grown by 0.51%.

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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