Benzinga | May 12, 2021 10:27AM EDT

Ex-Dividend Date Insight: Alliance Data Systems

On April 29, 2021, Alliance Data Systems (NYSE:ADS) announced shareholders can expect to receive a dividend payable on June 18, 2021. The stock will then go ex-dividend 1 business day(s) before the record date. The ex-dividend date for Alliance Data Systems will be on May 13, 2021. The company's current dividend payout is at $0.21. That equates to a dividend yield of 0.78% at current price levels.

What Is An Ex-Dividend Date?

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.

Alliance Data Systems's Dividend Payouts And Yields

Over the past year, Alliance Data Systems has experienced no change regarding its dividend payouts and a downward trend regarding its yields. Last year on May 13, 2020 the company's payout was $0.21, which has returned to its value today. Alliance Data Systems's dividend yield last year was 2.29%, which has since decreased by 1.51%.

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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