On January 25, 2021, Scotts Miracle Gro (NYSE:SMG) declared a dividend payable on March 10, 2021 to its shareholders. Scotts Miracle Gro also announced that shareholders on the company's books on or before February 24, 2021 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. Scotts Miracle Gro, whose current dividend payout is $0.62, has an ex-dividend date set at February 23, 2021. The payout equates to a dividend yield of 1.07% at current price levels.

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.

Over the past year, Scotts Miracle Gro has experienced an overall upward trend regarding its dividend payouts and a downward trend regarding its yields. Last year on May 26, 2020 the company's payout was $0.58, which has since grown by $0.04. Scotts Miracle Gro's dividend yield last year was 1.86%, which has since decreased by 0.79%.
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.