Benzinga | Dec 29, 2020 10:19AM EST

Ex-Dividend Date Insight: Amdocs

On November 10, 2020, Amdocs (NASDAQ:DOX) declared a dividend payable on January 22, 2021 to its shareholders. Amdocs also announced that shareholders on the company's books on or before December 31, 2020 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. Amdocs has an ex-dividend date planned for December 30, 2020. The company's current dividend payout sits at $0.33. That equates to a dividend yield of 2.16% at current price levels.

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

Understanding Amdocs's Dividend History

Over the past year, Amdocs has seen its dividend payouts and yields climb upward overall. Last year (December 30, 2019), the company's payout sat at $0.28, which has since increased by $0.04. Amdocs's dividend yield last year was 1.7%, which has since grown by 0.46%.

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 Amdocs's previous dividends.