Ex-Dividend Date Insight: BanColombia

On June 7, 2021, BanColombia CIB announced shareholders can expect to receive a dividend payable on July 12, 2021. The stock will then go ex-dividend 1 business day(s) before the record date. BanColombia has an ex-dividend date planned for June 28, 2021. The company's current dividend payout sits at $0.07. That equates to a dividend yield of 0.92% at current price levels.

The Significance Of Ex-Dividend Dates

Ex-dividend dates are when company shares stop trading with their current dividend payouts in preparation for those companies to announce new ones. 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 BanColombia's Dividend History

Over the past year, BanColombia has experienced an overall downward trend regarding its dividend payouts and yields. Last year on June 29, 2020 the company's payout was $0.32, which has since decreased by $0.25. Similarly, BanColombia's dividend yield last year was 4.03%, which has since declined by 3.11%.
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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