Ex-Dividend Date Insight: Putnam Premier Income

Putnam Premier Income PPT declared a dividend payable on February 1, 2021 to its shareholders as of November 20, 2020. It was also announced that shareholders of Putnam Premier Income's stock as of January 22, 2021 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. Putnam Premier Income, which has a current dividend per share of $0.03, has an ex-dividend date scheduled for January 21, 2021. That equates to a dividend yield of 6.77% 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.

Putnam Premier Income's Dividend Performance

Over the past year, Putnam Premier Income has experienced an overall downward trend regarding its dividend payouts and yields. Last year on September 23, 2020 the company's payout was $0.04, which has since decreased by $0.01. Similarly, Putnam Premier Income's dividend yield last year was 8.75%, which has since declined by 1.98%.
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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