Ex-Dividend Date Insight: Federal Signal
On February 18, 2021, Federal Signal (NYSE:FSS) declared a dividend payable on March 31, 2021 to its shareholders. Federal Signal also announced that shareholders on the company's books on or before March 19, 2021 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. The ex-dividend date for Federal Signal is set for March 18, 2021. The company's current dividend payout sits at $0.09, equating to a dividend yield of 1.01% at current price levels.
The Significance Of An Ex-Dividend Date
Ex-dividend dates signal when company shares cease to trade with their current dividend payouts. There is a small intermission period before companies announce new dividends. 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 Federal Signal's Dividend History
Over the past year, Federal Signal has seen its dividend payouts and yields climb upward overall. Last year (March 17, 2020), the company's payout sat at $0.08, which has since increased by $0.01. Federal Signal's dividend yield last year was 0.97%, which has since grown by 0.04%.
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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