Understanding First Trust Senior's Ex-Dividend Date

First Trust Senior FCT declared a dividend payable on January 15, 2021 to its shareholders as of December 21, 2020. It was also announced that shareholders of First Trust Senior's stock as of January 5, 2021 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. First Trust Senior has an ex-dividend date planned for January 4, 2021. The company's current dividend payout sits at $0.1. That equates to a dividend yield of 10.81% 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.

Understanding First Trust Senior's Dividend Payouts And Yields

Over the past year, First Trust Senior has seen its dividend payouts remain the same and its yields trend downward. Last year on September 1, 2020 the company's payout sat at $0.1, which has returned to its value today. First Trust Senior's dividend yield last year was 11.27%, which has since decreased by 0.46%.
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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