Benzinga | Jul 2, 2021 10:40AM EDT

Understanding Progressive's Ex-Dividend Date

Progressive (NYSE:PGR) declared a dividend payable on July 15, 2021 to its shareholders as of May 7, 2021. It was also announced that shareholders of Progressive's stock as of July 7, 2021 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. Progressive, whose current dividend payout is $0.1, has an ex-dividend date set at July 6, 2021. The payout equates to a dividend yield of 0.38% at current price levels.

Understanding Ex-Dividend Dates'

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. Typically, companies will announce and implement new dividend yields on a quarterly basis.

Understanding Progressive's Dividend Performance

Over the past year, Progressive has seen its dividend payouts remain the same and its yields trend downward. Last year on October 6, 2020 the company's payout sat at $0.1, which has returned to its value today. Progressive's dividend yield last year was 0.45%, which has since decreased by 0.07%.

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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