Understanding Prospect Capital's Ex-Dividend Date

On May 10, 2021, Prospect Capital PSEC declared a dividend payable on August 19, 2021 to its shareholders. Prospect Capital also announced that shareholders on the company's books on or before July 28, 2021 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. Prospect Capital, which has a current dividend per share of $0.06, has an ex-dividend date scheduled for July 27, 2021. That equates to a dividend yield of 8.82% at current price levels.

Understanding Ex-Dividend Dates'

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. Most ex-dividend dates operate on a quarterly basis.

Understanding Prospect Capital's Dividend Performance

Over the past year, Prospect Capital has seen its dividend payouts remain the same and its yields trend downward. Last year on February 25, 2021 the company's payout sat at $0.06, which has returned to its value today. Prospect Capital's dividend yield last year was 10.71%, which has since decreased by 1.89%.
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 Prospect Capital's previous dividends.