Ex-Dividend Date Insight: First Trust MLP

On October 20, 2020, First Trust MLP FEI declared a dividend payable on January 15, 2021 to its shareholders. First Trust MLP also announced that shareholders on the company's books on or before January 5, 2021 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. First Trust MLP has an ex-dividend date planned for January 4, 2021. The company's current dividend payout sits at $0.05. That equates to a dividend yield of 11.28% 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. Most ex-dividend dates operate on a quarterly basis.

Understanding First Trust MLP's Dividend History

Over the past year, First Trust MLP has experienced no change regarding its dividend payouts and an overall upward trend regarding its yields. Last year on September 1, 2020 the company's payout was $0.05, which has returned to its value today. First Trust MLP's dividend yield last year was 11.01%, which has since grown by 0.27%.
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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