Analyzing CDK Global's Ex-Dividend Date

CDK Global CDK declared a dividend payable on June 30, 2021 to its shareholders as of June 10, 2021. It was also announced that shareholders of CDK Global's stock as of June 21, 2021 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. CDK Global, which has a current dividend per share of $0.15, has an ex-dividend date scheduled for June 18, 2021. That equates to a dividend yield of 1.13% at current price levels.

The Significance Of An Ex-Dividend Date

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

CDK Global's Dividend Payouts And Yields

Over the past year, CDK Global has seen its dividend payouts remain the same and its yields trend downward. Last year on June 4, 2020 the company's payout sat at $0.15, which has returned to its value today. CDK Global's dividend yield last year was 1.54%, which has since decreased by 0.41%.
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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