Benzinga | Jul 7, 2021 10:22AM EDT

Ex-Dividend Date Insight: NetApp

On June 2, 2021, NetApp (NASDAQ:NTAP) announced shareholders can expect to receive a dividend payable on July 28, 2021. The stock will then go ex-dividend 1 business day(s) before the record date. NetApp, which has a current dividend per share of $0.5, has an ex-dividend date scheduled for July 8, 2021. That equates to a dividend yield of 2.61% at current price levels.

What Is 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.

Understanding NetApp's Dividend Payouts And Yields

Over the past year, NetApp has seen its dividend payouts climb upward and its yields trend downward. Last year on July 9, 2020 the company's payout sat at $0.48, which has since increased by $0.02. NetApp's dividend yield last year was 4.25%, which has since decreased by 1.64%.

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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