Benzinga | May 20, 2021 10:13AM EDT

Ex-Dividend Date Insight: First Hawaiian

On April 23, 2021, First Hawaiian (NASDAQ:FHB) declared a dividend payable on June 4, 2021 to its shareholders. First Hawaiian also announced that shareholders on the company's books on or before May 24, 2021 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. First Hawaiian, whose current dividend payout is $0.26, has an ex-dividend date set at May 21, 2021. The payout equates to a dividend yield of 3.84% at current price levels.

The Significance Of 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. Most ex-dividend dates operate on a quarterly basis.

First Hawaiian's Dividend Performance

Over the past year, First Hawaiian has seen its dividend payouts remain the same and its yields trend downward. Last year on May 22, 2020 the company's payout sat at $0.26, which has returned to its value today. First Hawaiian's dividend yield last year was 6.42%, which has since decreased by 2.58%.

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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