Benzinga | Jul 15, 2021 10:18AM EDT

Ex-Dividend Date Insight: Ares Dynamic Credit

Ares Dynamic Credit (NYSE:ARDC) declared a dividend payable on July 30, 2021 to its shareholders as of July 9, 2021. It was also announced that shareholders of Ares Dynamic Credit's stock as of July 19, 2021 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. Ares Dynamic Credit, whose current dividend payout is $0.1, has an ex-dividend date set at July 16, 2021. The payout equates to a dividend yield of 7.18% at current price levels.

What Is An Ex-Dividend Date?

An ex-dividend date signals when a company's shares cease to trade with its current dividend payout. There is a small intermission period before the company announces a new dividend. 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.

Ares Dynamic Credit's Dividend Performance

Over the past year, Ares Dynamic Credit has seen its dividend payouts remain the same and its yields trend downward. Last year on March 19, 2021 the company's payout sat at $0.1, which has returned to its value today. Ares Dynamic Credit's dividend yield last year was 7.71%, which has since decreased by 0.53%.

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.

Click here to find details on Ares Dynamic Credit's previous dividends.