Understanding Diversified Healthcare's Ex-Dividend Date

Diversified Healthcare DHC declared a dividend payable on February 18, 2021 to its shareholders as of January 14, 2021. It was also announced that shareholders of Diversified Healthcare's stock as of January 25, 2021 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. Diversified Healthcare, whose current dividend payout is $0.01, has an ex-dividend date set at January 22, 2021. The payout equates to a dividend yield of 0.9% at current price levels.

The Significance Of An Ex-Dividend Date

Ex-dividend dates are when company shares stop trading with their current dividend payouts in preparation for those companies to announce new ones. 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 Diversified Healthcare's Dividend Performance

Over the past year, Diversified Healthcare has experienced an overall downward trend regarding its dividend payouts and yields. Last year on January 24, 2020 the company's payout was $0.15, which has since decreased by $0.14. Similarly, Diversified Healthcare's dividend yield last year was 6.89%, which has since declined by 5.99%.
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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