Analyzing DCP Midstream's Ex-Dividend Date

DCP Midstream DCP declared a dividend payable on February 12, 2021 to its shareholders as of January 21, 2021. It was also announced that shareholders of DCP Midstream's stock as of February 5, 2021 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. DCP Midstream, which has a current dividend per share of $0.39, has an ex-dividend date scheduled for February 4, 2021. That equates to a dividend yield of 6.96% at current price levels.

What Are Ex-Dividend Dates?

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 DCP Midstream's Dividend Payouts And Yields

Over the past year, DCP Midstream has seen its dividend payouts and yields descend downward overall. Last year on January 31, 2020 the company's payout sat at $0.78, which has since decreased by $0.39. DCP Midstream's dividend yield last year was 13.04%, which has since declined by 6.08%.
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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