Benzinga | Mar 18, 2021 10:13AM EDT

Understanding Ares Dynamic Credit's Ex-Dividend Date

Ares Dynamic Credit (NYSE:ARDC) declared a dividend payable on March 31, 2021 to its shareholders as of March 11, 2021. It was also announced that shareholders of Ares Dynamic Credit's stock as of March 22, 2021 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. Ares Dynamic Credit, which has a current dividend per share of $0.1, has an ex-dividend date scheduled for March 19, 2021. That equates to a dividend yield of 7.71% at current price levels.

What Is An Ex-Dividend Date?

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.

Ares Dynamic Credit's Dividend Payouts And Yields

Over the past year, Ares Dynamic Credit has experienced no change regarding its dividend payouts and a downward trend regarding its yields. Last year on November 18, 2020 the company's payout was $0.1, which has returned to its value today. Ares Dynamic Credit's dividend yield last year was 8.97%, which has since decreased by 1.26%.

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 Ares Dynamic Credit's previous dividends.