Understanding First Trust MLP's Ex-Dividend Date

On July 20, 2021, First Trust MLP FEI announced shareholders can expect to receive a dividend payable on October 15, 2021. The stock will then go ex-dividend 1 business day(s) before the record date. First Trust MLP has an ex-dividend date set for for October 1, 2021. The company's current dividend payout is $0.05, which equates to a dividend yield of 8.31% at current price levels.

What Are 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. Typically, companies will announce and implement new dividend yields on a quarterly basis.

First Trust MLP's Dividend History

Over the past year, First Trust MLP has experienced no change regarding its dividend payouts and a downward trend regarding its yields. Last year on June 1, 2021 the company's payout was $0.05, which has returned to its value today. First Trust MLP's dividend yield last year was 8.43%, which has since decreased by 0.12%.
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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