Understanding First Trust Senior's Ex-Dividend Date

On October 20, 2020, First Trust Senior FCT announced shareholders can expect to receive a dividend payable on November 16, 2020. The stock will then go ex-dividend 1 business day(s) before the record date. First Trust Senior, whose current dividend payout is $0.1, has an ex-dividend date set at November 2, 2020. The payout equates to a dividend yield of 11.61% at current price levels.

The Significance Of An Ex-Dividend Date

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 First Trust Senior's Dividend Payouts And Yields

Over the past year, First Trust Senior has seen its dividend payouts remain the same and its yields climb upward overall. Last year on July 1, 2020 the company's payout sat at $0.1, which has returned to its value today. First Trust Senior's dividend yield last year was 11.32%, which has since grown by 0.29%.
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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