Benzinga | Dec 14, 2020 10:11AM EST

Ex-Dividend Date Insight: FS KKR Capital

On November 9, 2020, FS KKR Capital (NYSE:FSK) declared a dividend payable on January 5, 2021 to its shareholders. FS KKR Capital also announced that shareholders on the company's books on or before December 16, 2020 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. FS KKR Capital, whose current dividend payout is $0.6, has an ex-dividend date set at December 15, 2020. The payout equates to a dividend yield of 15.77% at current price levels.

The Significance Of 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.

Understanding FS KKR Capital's Dividend History

Over the past year, FS KKR Capital has seen its dividend payouts and yields climb upward overall. Last year (December 17, 2019), the company's payout sat at $0.19, which has since increased by $0.41. FS KKR Capital's dividend yield last year was 13.22%, which has since grown by 2.55%.

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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