On August 2, 2021, Otter Tail OTTR declared a dividend payable on September 10, 2021 to its shareholders. Otter Tail also announced that shareholders on the company's books on or before August 13, 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 Otter Tail is set for August 12, 2021. The company's current dividend payout sits at $0.39, equating to a dividend yield of 3.07% at current price levels.
The Significance Of Ex-Dividend Dates
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. Typically, companies will announce and implement new dividend yields on a quarterly basis.
Understanding Otter Tail's Dividend Payouts And Yields
Over the past year, Otter Tail has experienced an overall upward trend regarding its dividend payouts and a downward trend regarding its yields. Last year on August 13, 2020 the company's payout was $0.37, which has since grown by $0.02. Otter Tail's dividend yield last year was 3.87%, which has since decreased by 0.8%.
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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