Benzinga | Jun 25, 2021 10:21AM EDT

Understanding Main Street Capital's Ex-Dividend Date

On May 4, 2021, Main Street Capital (NYSE:MAIN) declared a dividend payable on July 15, 2021 to its shareholders. Main Street Capital 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. Main Street Capital has an ex-dividend date planned for June 28, 2021. The company's current dividend payout sits at $0.2. That equates to a dividend yield of 5.8% at current price levels.

The Significance Of An Ex-Dividend Date

Ex-dividend dates signal when company shares cease to trade with their current dividend payouts. There is a small intermission period before companies announce new dividends. 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.

Main Street Capital's Dividend Performance

Over the past year, Main Street Capital has experienced no change regarding its dividend payouts and a downward trend regarding its yields. Last year on April 28, 2021 the company's payout was $0.2, which has returned to its value today. Main Street Capital's dividend yield last year was 6.9%, which has since decreased by 1.1%.

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.

To read more about Main Street Capital click here.