Market Overview

Analyzing CMS Energy's Ex-Dividend Date


CMS Energy (NYSE: CMS) declared a dividend payable on November 30, 2020 to its shareholders as of October 15, 2020. It was also announced that shareholders of CMS Energy's stock as of November 6, 2020 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. CMS Energy has an ex-dividend date set for for November 5, 2020. The company's current dividend payout is $0.41, which equates to a dividend yield of 2.52% at current price levels.

The Significance Of An Ex-Dividend Date

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.

CMS Energy's Dividend Payouts And Yields

Over the past year, CMS Energy has experienced an overall downward trend regarding its dividend payouts and yields. Last year on November 29, 2019 the company's payout was $1.12, which has since decreased by $0.72. Similarly, CMS Energy's dividend yield last year was 7.5%, which has since declined by 4.98%.
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