Benzinga | Mar 15, 2021 11:48AM EDT

Understanding Methanex's Ex-Dividend Date

On January 28, 2021, Methanex (NASDAQ:MEOH) declared a dividend payable on March 31, 2021 to its shareholders. Methanex also announced that shareholders on the company's books on or before March 17, 2021 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. Methanex has an ex-dividend date set for for March 16, 2021. The company's current dividend payout is $0.04, which equates to a dividend yield of 0.44% 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. Typically, companies will announce and implement new dividend yields on a quarterly basis.

Understanding Methanex's Dividend History

Over the past year, Methanex has seen its dividend payouts and yields descend downward overall. Last year on March 16, 2020 the company's payout sat at $0.36, which has since decreased by $0.32. Methanex's dividend yield last year was 3.89%, which has since declined by 3.45%.

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.

To read more about Methanex click here.