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Understanding ALLETE's Ex-Dividend Date

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ALLETE (NYSE: ALE) declared a dividend payable on December 1, 2020 to its shareholders as of October 30, 2020. It was also announced that shareholders of ALLETE's stock as of November 16, 2020 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. ALLETE, which has a current dividend per share of $0.62, has an ex-dividend date scheduled for November 13, 2020. That equates to a dividend yield of 4.77% at current price levels.

The Significance Of An Ex-Dividend Date

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. Most ex-dividend dates operate on a quarterly basis.

ALLETE's Dividend Payouts And Yields

Over the past year, ALLETE has seen its dividend payouts and yields climb upward overall. Last year (November 14, 2019), the company's payout sat at $0.59, which has since increased by $0.03. ALLETE's dividend yield last year was 2.69%, which has since grown by 2.08%.
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 ALLETE's previous dividends.

 

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Posted-In: Dividends