Benzinga | Jun 4, 2021 10:40AM EDT

Analyzing Severn Bancorp's Ex-Dividend Date

On May 25, 2021, Severn Bancorp (NASDAQ:SVBI) declared a dividend payable on June 15, 2021 to its shareholders. Severn Bancorp also announced that shareholders on the company's books on or before June 8, 2021 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. Severn Bancorp, which has a current dividend per share of $0.05, has an ex-dividend date scheduled for June 7, 2021. That equates to a dividend yield of 1.68% at current price levels.

The Significance Of An Ex-Dividend Date

An ex-dividend date is when a company's shares stop trading with its current dividend payout in preparation for the company to announce a new one. 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.

Severn Bancorp's Dividend Payouts And Yields

Over the past year, Severn Bancorp has experienced an overall upward trend regarding its dividend payouts and a downward trend regarding its yields. Last year on June 5, 2020 the company's payout was $0.04, which has since grown by $0.01. Severn Bancorp's dividend yield last year was 2.81%, which has since decreased by 1.13%.

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 Severn Bancorp's previous dividends.