New Mountain Finance (NASDAQ:NMFC) declared a dividend payable on December 30, 2020 to its shareholders as of October 28, 2020. It was also announced that shareholders of New Mountain Finance's stock as of December 16, 2020 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. The ex-dividend date for New Mountain Finance is set for December 15, 2020. The company's current dividend payout sits at $0.3, equating to a dividend yield of 12.7% 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. Most ex-dividend dates operate on a quarterly basis.
New Mountain Finance's Dividend History
Over the past year, New Mountain Finance has seen its dividend payouts descend downward and yields trend upward. Last year on December 12, 2019 the company's payout sat at $0.34, which has since decreased by $0.04. New Mountain Finance's dividend yield last year was 9.96%, which has since grown by 2.74%.
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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