Benzinga | Jul 23, 2021 11:10AM EDT

Understanding Bank of New York Mellon's Ex-Dividend Date

On July 15, 2021, Bank of New York Mellon (NYSE:BK) announced shareholders can expect to receive a dividend payable on August 9, 2021. The stock will then go ex-dividend 1 business day(s) before the record date. Bank of New York Mellon, whose current dividend payout is $0.34, has an ex-dividend date set at July 26, 2021. The payout equates to a dividend yield of 2.76% at current price levels.

What Is 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. Most ex-dividend dates operate on a quarterly basis.

Bank of New York Mellon's Dividend Performance

Over the past year, Bank of New York Mellon has seen its dividend payouts climb upward and its yields trend downward. Last year on July 24, 2020 the company's payout sat at $0.31, which has since increased by $0.03. Bank of New York Mellon's dividend yield last year was 3.18%, which has since decreased by 0.42%.

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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