Benzinga | Nov 4, 2020 10:20AM EST

Understanding Lamb Weston Hldgs's Ex-Dividend Date

On September 24, 2020, Lamb Weston Hldgs (NYSE: LW) declared a dividend payable on December 4, 2020 to its shareholders. Lamb Weston Hldgs also announced that shareholders on the company's books on or before November 6, 2020 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. Lamb Weston Hldgs, which has a current dividend payout of $0.23, has an ex-dividend date scheduled for November 5, 2020. That equates to a dividend yield of 1.45% at current price levels.

What Is 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.

Lamb Weston Hldgs's Dividend History

Over the past year, Lamb Weston Hldgs has seen its dividend payouts and yields climb upward overall. Last year (October 31, 2019), the company's payout sat at $0.2, which has since increased by $0.03. Lamb Weston Hldgs's dividend yield last year was 1.0%, which has since grown by 0.45%.

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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