Ex-Dividend Date Insight: First Trust High Income

First Trust High Income FSD declared a dividend payable on September 15, 2021 to its shareholders as of August 23, 2021. It was also announced that shareholders of First Trust High Income's stock as of September 2, 2021 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. First Trust High Income, whose current dividend payout is $0.11, has an ex-dividend date set at September 1, 2021. The payout equates to a dividend yield of 8.38% at current price levels.

What Are Ex-Dividend Dates?

An ex-dividend date is when a company's shares stop trading with its current dividend payout in preparation for the company to announce a new one. 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 High Income's Dividend Performance

Over the past year, First Trust High Income has seen its dividend payouts remain the same and its yields trend downward. Last year on May 3, 2021 the company's payout sat at $0.11, which has returned to its value today. First Trust High Income's dividend yield last year was 8.7%, which has since decreased by 0.32%.
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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