Benzinga | Oct 30, 2020 11:17AM EDT

Analyzing FIRST TRUST SENIOR's Ex-Dividend Date

FIRST TRUST SENIOR (NYSE: FIV) declared a dividend payable on November 16, 2020 to its shareholders as of October 20, 2020. It was also announced that shareholders of FIRST TRUST SENIOR's stock as of November 3, 2020 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. FIRST TRUST SENIOR, which has a current dividend payout of $0.02, has an ex-dividend date scheduled for November 2, 2020. That equates to a dividend yield of 2.14% at current price levels.

Understanding 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. Typically, companies will announce and implement new dividend yields on a quarterly basis.

Understanding FIRST TRUST SENIOR's Dividend Performance

Over the past year, FIRST TRUST SENIOR has experienced no change regarding its dividend payouts and a downward trend regarding its yields. Last year on July 1, 2020 the company's payout was $0.02, which has returned to its value today. FIRST TRUST SENIOR's dividend yield last year was 2.92%, which has since decreased by 0.78%.

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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