Understanding Tri-Continental's Ex-Dividend Date

On November 20, 2020, Tri-Continental TY announced shareholders can expect to receive a dividend payable on December 24, 2020. The stock will then go ex-dividend 1 business day(s) before the record date. Tri-Continental has an ex-dividend date set for for December 15, 2020. The company's current dividend payout is $0.27, which equates to a dividend yield of 3.76% 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.

Tri-Continental's Dividend Performance

Over the past year, Tri-Continental has seen its dividend payouts and yields climb upward overall. Last year (December 17, 2019), the company's payout sat at $0.25, which has since increased by $0.02. Tri-Continental's dividend yield last year was 3.57%, which has since grown by 0.19%.
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 Tri-Continental's previous dividends.