Benzinga | Dec 7, 2020 10:15AM EST

Understanding Kimco Realty's Ex-Dividend Date

Kimco Realty (NYSE:KIM) declared a dividend payable on December 23, 2020 to its shareholders as of November 19, 2020. It was also announced that shareholders of Kimco Realty's stock as of December 9, 2020 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. Kimco Realty, which has a current dividend per share of $0.16, has an ex-dividend date scheduled for December 8, 2020. That equates to a dividend yield of 4.4% at current price levels.

The Significance Of Ex-Dividend Dates

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

Understanding Kimco Realty's Dividend Performance

Over the past year, Kimco Realty has seen its dividend payouts and yields descend downward overall. Last year on October 1, 2019 the company's payout sat at $0.28, which has since decreased by $0.12. Kimco Realty's dividend yield last year was 6.0%, which has since declined by 1.6%.

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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