Analyzing Essential Utilities's Ex-Dividend Date
Essential Utilities (NYSE:WTRG) declared a dividend payable on June 1, 2021 to its shareholders as of April 14, 2021. It was also announced that shareholders of Essential Utilities’s stock as of May 14, 2021 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. Essential Utilities has an ex-dividend date set for for May 13, 2021. The company’s current dividend payout is $0.25, which equates to a dividend yield of 2.15% at current price levels.
The Significance Of An Ex-Dividend Date
Ex-dividend dates are when company shares stop trading with their current dividend payouts in preparation for those companies to announce new ones. 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 Essential Utilities’s Dividend History
Over the past year, Essential Utilities has experienced an overall upward trend regarding its dividend payouts and a downward trend regarding its yields. Last year on May 14, 2020 the company’s payout was $0.23, which has since grown by $0.02. Essential Utilities’s dividend yield last year was 2.43%, which has since decreased by 0.28%.
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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