Benzinga | Jun 2, 2021 10:20AM EDT

Ex-Dividend Date Insight: Open Text

On May 5, 2021, Open Text (NASDAQ:OTEX) declared a dividend payable on June 25, 2021 to its shareholders. Open Text also announced that shareholders on the company's books on or before June 4, 2021 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. Open Text, which has a current dividend per share of $0.2, has an ex-dividend date scheduled for June 3, 2021. That equates to a dividend yield of 1.7% 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 Open Text's Dividend Payouts And Yields

Over the past year, Open Text has seen its dividend payouts climb upward and its yields trend downward. Last year on May 28, 2020 the company's payout sat at $0.17, which has since increased by $0.03. Open Text's dividend yield last year was 1.91%, which has since decreased by 0.21%.

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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