Understanding Valhi's Ex-Dividend Date

Valhi VHI declared a dividend payable on June 24, 2021 to its shareholders as of May 27, 2021. It was also announced that shareholders of Valhi's stock as of June 7, 2021 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. Valhi has an ex-dividend date set for for June 4, 2021. The company's current dividend payout is $0.08, which equates to a dividend yield of 1.23% at current price levels.

The Significance Of 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. Typically, companies will announce and implement new dividend yields on a quarterly basis.

Valhi's Dividend Performance

Over the past year, Valhi has seen its dividend payouts remain the same and its yields trend downward. Last year on June 15, 2020 the company's payout sat at $0.08, which has returned to its value today. Valhi's dividend yield last year was 33.23%, which has since decreased by 32.0%.
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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