Ex-Dividend Date Insight: First Trust Senior

On July 20, 2021, First Trust Senior FCT declared a dividend payable on August 16, 2021 to its shareholders. First Trust Senior also announced that shareholders on the company's books on or before August 3, 2021 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. First Trust Senior, whose current dividend payout is $0.09, has an ex-dividend date set at August 2, 2021. The payout equates to a dividend yield of 8.71% at current price levels.

The Significance Of Ex-Dividend Dates

Ex-dividend dates signal when company shares cease to trade with their current dividend payouts. There is a small intermission period before companies announce new dividends. 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 Senior's Dividend Payouts And Yields

Over the past year, First Trust Senior has seen its dividend payouts and yields descend downward overall. Last year on April 1, 2021 the company's payout sat at $0.1, which has since decreased by $0.01. First Trust Senior's dividend yield last year was 9.55%, which has since declined by 0.84%.
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.

Click here to find details on First Trust Senior's previous dividends.