Ex-Dividend Date Insight: Encompass Health

On February 24, 2021, Encompass Health EHC declared a dividend payable on April 15, 2021 to its shareholders. Encompass Health also announced that shareholders on the company's books on or before April 1, 2021 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. Encompass Health has an ex-dividend date planned for March 31, 2021. The company's current dividend payout sits at $0.28. That equates to a dividend yield of 1.4% at current price levels.

The Significance Of An Ex-Dividend Date

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 Encompass Health's Dividend Payouts And Yields

Over the past year, Encompass Health has seen its dividend payouts remain the same and its yields climb upward overall. Last year on March 31, 2020 the company's payout sat at $0.28, which has returned to its value today. Encompass Health's dividend yield last year was 1.35%, which has since grown by 0.05%.
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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