Ex-Dividend Date Insight: Magic Software

On August 12, 2021, Magic Software MGIC declared a dividend payable on September 14, 2021 to its shareholders. Magic Software also announced that shareholders on the company's books on or before August 30, 2021 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. Magic Software, which has a current dividend per share of $0.23, has an ex-dividend date scheduled for August 27, 2021. That equates to a dividend yield of 2.7% at current price levels.

The Significance Of 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. Most ex-dividend dates operate on a quarterly basis.

Magic Software's Dividend Payouts And Yields

Over the past year, Magic Software has experienced an overall upward trend regarding its dividend payouts and a downward trend regarding its yields. Last year on August 26, 2019 the company's payout was $0.16, which has since grown by $0.08. Magic Software's dividend yield last year was 3.0%, which has since decreased by 0.3%.
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 Magic Software's previous dividends.