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Understanding CIT Group's Ex-Dividend Date

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On October 15, 2020, CIT Group (NYSE: CIT) declared a dividend payable on November 20, 2020 to its shareholders. CIT Group also announced that shareholders on the company's books on or before November 6, 2020 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. CIT Group has an ex-dividend date planned for November 5, 2020. The company's current dividend payout sits at $0.35. That equates to a dividend yield of 7.32% 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. Most ex-dividend dates operate on a quarterly basis.

CIT Group's Dividend History

Over the past year, CIT Group has experienced no change regarding its dividend payouts and an overall upward trend regarding its yields. Last year on November 7, 2019 the company's payout was $0.35, which has returned to its value today. CIT Group's dividend yield last year was 3.15%, which has since grown by 4.17%.
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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Posted-In: Dividends