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On December 2, 2020, Towne Bank (NASDAQ:TOWN) declared a dividend payable on January 11, 2021 to its shareholders. Towne Bank also announced that shareholders on the company's books on or before December 30, 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 Towne Bank will be on December 29, 2020. The company's current dividend payout is at $0.18. That equates to a dividend yield of 3.24% at current price levels.
What Is 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.
Understanding Towne Bank's Dividend Performance
Over the past year, Towne Bank has seen its dividend payouts remain the same and its yields climb upward overall. Last year on December 27, 2019 the company's payout sat at $0.18, which has returned to its value today. Towne Bank's dividend yield last year was 2.57%, which has since grown by 0.67%.
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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