Understanding Wells Fargo Income's Ex-Dividend Date

Wells Fargo Income EAD declared a dividend payable on January 4, 2021 to its shareholders as of November 17, 2020. It was also announced that shareholders of Wells Fargo Income's stock as of December 14, 2020 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. Wells Fargo Income has an ex-dividend date set for for December 11, 2020. The company's current dividend payout is $0.06, which equates to a dividend yield of 8.81% at current price levels.

The Significance Of An Ex-Dividend Date

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. Typically, companies will announce and implement new dividend yields on a quarterly basis.

Wells Fargo Income's Dividend Performance

Over the past year, Wells Fargo Income has seen its dividend payouts remain the same and its yields trend downward. Last year on August 13, 2020 the company's payout sat at $0.06, which has returned to its value today. Wells Fargo Income's dividend yield last year was 9.32%, which has since decreased by 0.51%.
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 Wells Fargo Income's previous dividends.