Benzinga | Nov 2, 2020 10:23AM EST

Analyzing Clorox's Ex-Dividend Date

Clorox (NYSE: CLX) declared a dividend payable on November 20, 2020 to its shareholders as of September 22, 2020. It was also announced that shareholders of Clorox's stock as of November 4, 2020 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. Clorox has an ex-dividend date set for for November 3, 2020. The company's current dividend payout is $1.11, which equates to a dividend yield of 2.13% 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. Typically, companies will announce and implement new dividend yields on a quarterly basis.

Understanding Clorox's Dividend Performance

Over the past year, Clorox has seen its dividend payouts climb upward and its yields trend downward. Last year on October 29, 2019 the company's payout sat at $1.06, which has since increased by $0.05. Clorox's dividend yield last year was 3.0%, which has since decreased by 0.87%.

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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