Benzinga | Nov 9, 2020 10:21AM EST

Analyzing Diamondback Energy's Ex-Dividend Date

On November 2, 2020, Diamondback Energy (NASDAQ: FANG) announced shareholders can expect to receive a dividend payable on November 19, 2020. The stock will then go ex-dividend 2 business day(s) before the record date. Diamondback Energy has an ex-dividend date set for for November 10, 2020. The company's current dividend payout is $0.38, which equates to a dividend yield of 5.78% 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 Diamondback Energy's Dividend Payouts And Yields

Over the past year, Diamondback Energy has seen its dividend payouts and yields climb upward overall. Last year (November 14, 2019), the company's payout sat at $0.19, which has since increased by $0.19. Diamondback Energy's dividend yield last year was 0.83%, which has since grown by 4.95%.

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.

To read more news on Diamondback Energy click here.