Benzinga | May 20, 2021 10:11AM EDT

Ex-Dividend Date Insight: Tiptree

Tiptree (NASDAQ:TIPT) declared a dividend payable on June 1, 2021 to its shareholders as of May 5, 2021. It was also announced that shareholders of Tiptree's stock as of May 24, 2021 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. Tiptree has an ex-dividend date planned for May 21, 2021. The company's current dividend payout sits at $0.04. That equates to a dividend yield of 1.7% at current price levels.

The Significance Of Ex-Dividend Dates

An ex-dividend date signals when a company's shares cease to trade with its current dividend payout. There is a small intermission period before the company announces a new dividend. 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. Most ex-dividend dates operate on a quarterly basis.

Tiptree's Dividend Performance

Over the past year, Tiptree has experienced no change regarding its dividend payouts and a downward trend regarding its yields. Last year on May 15, 2020 the company's payout was $0.04, which has returned to its value today. Tiptree's dividend yield last year was 2.68%, which has since decreased by 0.98%.

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 Tiptree's previous dividends.