Benzinga | Jun 25, 2021 10:20AM EDT

Understanding Berkshire Hills Bancorp's Ex-Dividend Date

On June 18, 2021, Berkshire Hills Bancorp (NYSE:BHLB) declared a dividend payable on July 8, 2021 to its shareholders. Berkshire Hills Bancorp also announced that shareholders on the company's books on or before June 29, 2021 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. Berkshire Hills Bancorp, whose current dividend payout is $0.12, has an ex-dividend date set at June 28, 2021. The payout equates to a dividend yield of 1.74% 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. Typically, companies will announce and implement new dividend yields on a quarterly basis.

Understanding Berkshire Hills Bancorp's Dividend Payouts And Yields

Over the past year, Berkshire Hills Bancorp has seen its dividend payouts and yields descend downward overall. Last year on June 26, 2020 the company's payout sat at $0.24, which has since decreased by $0.12. Berkshire Hills Bancorp's dividend yield last year was 8.78%, which has since declined by 7.04%.

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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