Benzinga | Nov 2, 2020 10:21AM EST

Understanding MetroCity Bankshares's Ex-Dividend Date

On October 21, 2020, MetroCity Bankshares (NASDAQ: MCBS) announced shareholders can expect to receive a dividend payable on November 13, 2020. The stock will then go ex-dividend 1 business day(s) before the record date. MetroCity Bankshares has an ex-dividend date planned for November 3, 2020. The company's current dividend payout sits at $0.09. That equates to a dividend yield of 2.45% at current price levels.

Understanding Ex-Dividend Dates'

Ex-dividend dates are when company shares stop trading with their current dividend payouts in preparation for those companies to announce new ones. 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.

MetroCity Bankshares's Dividend Performance

Over the past year, MetroCity Bankshares has seen its dividend payouts and yields descend downward overall. Last year on October 31, 2019 the company's payout sat at $0.11, which has since decreased by $0.02. MetroCity Bankshares's dividend yield last year was 3.26%, which has since declined by 0.81%.

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.

Click here to find details on MetroCity Bankshares's previous dividends.