On November 20, 2020, First Midwest Bancorp (NASDAQ:FMBI) declared a dividend payable on January 12, 2021 to its shareholders. First Midwest Bancorp also announced that shareholders on the company's books on or before December 18, 2020 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 First Midwest Bancorp will be on December 17, 2020. The company's current dividend payout is at $0.14. That equates to a dividend yield of 3.92% at current price levels.
The Significance Of An Ex-Dividend Date
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.
First Midwest Bancorp's Dividend Payouts And Yields
Over the past year, First Midwest Bancorp has seen its dividend payouts remain the same and its yields climb upward overall. Last year on December 19, 2019 the company's payout sat at $0.14, which has returned to its value today. First Midwest Bancorp's dividend yield last year was 2.62%, which has since grown by 1.3%.
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.
Click here to find details on First Midwest Bancorp's previous dividends.
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