Understanding Cargojet's Ex-Dividend Date

On November 12, 2020, Cargojet CGJTF declared a dividend payable on January 5, 2021 to its shareholders. Cargojet also announced that shareholders on the company's books on or before December 21, 2020 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. Cargojet, whose current dividend payout is $0.18, has an ex-dividend date set at December 18, 2020. The payout equates to a dividend yield of 0.43% 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.

Cargojet's Dividend History

Over the past year, Cargojet has seen its dividend payouts remain the same and its yields trend downward. Last year on December 19, 2019 the company's payout sat at $0.18, which has returned to its value today. Cargojet's dividend yield last year was 0.93%, which has since decreased by 0.5%.
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 Cargojet's previous dividends.