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Power Integrations (NASDAQ: POWI) declared a dividend payable on December 31, 2020 to its shareholders as of October 29, 2020. It was also announced that shareholders of Power Integrations's stock as of November 30, 2020 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. Power Integrations, which has a current dividend per share of $0.11, has an ex-dividend date scheduled for November 27, 2020. That equates to a dividend yield of 0.79% at current price levels.
The Significance Of An Ex-Dividend Date
Ex-dividend dates are when company shares stop trading with their current dividend payouts in preparation for those companies to announce new ones. 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 Power Integrations's Dividend Payouts And Yields
Over the past year, Power Integrations has experienced an overall downward trend regarding its dividend payouts and yields. Last year on November 27, 2019 the company's payout was $0.19, which has since decreased by $0.08. Similarly, Power Integrations's dividend yield last year was 0.86%, which has since declined by 0.07%.
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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