Understanding McGrath RentCorp's Ex-Dividend Date

On December 10, 2020, McGrath RentCorp MGRC declared a dividend payable on January 29, 2021 to its shareholders. McGrath RentCorp also announced that shareholders on the company's books on or before January 15, 2021 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. McGrath RentCorp, which has a current dividend per share of $0.42, has an ex-dividend date scheduled for January 14, 2021. That equates to a dividend yield of 2.6% at current price levels.

What Is 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.

Understanding McGrath RentCorp's Dividend Payouts And Yields

Over the past year, McGrath RentCorp has experienced an overall upward trend regarding its dividend payouts and yields. Last year on January 16, 2020 the company's payout was $0.38, which has since grown by $0.04. Similarly, McGrath RentCorp's dividend yield in last year was 2.03%, which has since grown by 0.57%.
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 McGrath RentCorp's previous dividends.