Ex-Dividend Date Insight: Allison Transmission
On February 11, 2021, Allison Transmission (NYSE:ALSN) declared a dividend payable on March 5, 2021 to its shareholders. Allison Transmission also announced that shareholders on the company's books on or before February 22, 2021 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. Allison Transmission, which has a current dividend per share of $0.19, has an ex-dividend date scheduled for February 19, 2021. That equates to a dividend yield of 1.76% at current price levels.
What Is 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. Most ex-dividend dates operate on a quarterly basis.
Allison Transmission's Dividend History
Over the past year, Allison Transmission has experienced an overall upward trend regarding its dividend payouts and yields. Last year on March 6, 2020 the company's payout was $0.17, which has since grown by $0.02. Similarly, Allison Transmission's dividend yield in last year was 1.57%, which has since grown by 0.19%.
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 Allison Transmission's previous dividends.
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