On May 20, 2021, Lancaster Colony (NASDAQ:LANC) declared a dividend payable on June 30, 2021 to its shareholders. Lancaster Colony also announced that shareholders on the company's books on or before June 9, 2021 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. Lancaster Colony, whose current dividend payout is $0.75, has an ex-dividend date set at June 8, 2021. The payout equates to a dividend yield of 1.6% at current price levels.

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.

Over the past year, Lancaster Colony has experienced an overall upward trend regarding its dividend payouts and a downward trend regarding its yields. Last year on June 8, 2020 the company's payout was $0.7, which has since grown by $0.05. Lancaster Colony's dividend yield last year was 1.92%, which has since decreased by 0.32%.
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.