Understanding Prospect Capital's Ex-Dividend Date

Prospect Capital PSEC declared a dividend payable on September 23, 2021 to its shareholders as of May 10, 2021. It was also announced that shareholders of Prospect Capital's stock as of August 27, 2021 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. Prospect Capital has an ex-dividend date set for for August 26, 2021. The company's current dividend payout is $0.06, which equates to a dividend yield of 8.82% at current price levels.

The Significance Of Ex-Dividend Dates

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. Typically, companies will announce and implement new dividend yields on a quarterly basis.

Prospect Capital's Dividend Payouts And Yields

Over the past year, Prospect Capital has experienced no change regarding its dividend payouts and a downward trend regarding its yields. Last year on April 29, 2021 the company's payout was $0.06, which has returned to its value today. Prospect Capital's dividend yield last year was 10.71%, which has since decreased by 1.89%.
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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