Benzinga | Jan 8, 2021 10:20AM EST

Understanding Eagle Point Credit Co's Ex-Dividend Date

On November 13, 2020, Eagle Point Credit Co (NYSE:ECC) announced shareholders can expect to receive a dividend payable on January 29, 2021. The stock will then go ex-dividend 1 business day(s) before the record date. Eagle Point Credit Co, which has a current dividend per share of $0.08, has an ex-dividend date scheduled for January 11, 2021. That equates to a dividend yield of 11.27% at current price levels.

The Significance Of 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.

Understanding Eagle Point Credit Co's Dividend Payouts And Yields

Over the past year, Eagle Point Credit Co has seen its dividend payouts remain the same and its yields trend downward. Last year on November 10, 2020 the company's payout sat at $0.08, which has returned to its value today. Eagle Point Credit Co's dividend yield last year was 12.21%, which has since decreased by 0.94%.

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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