Ex-Dividend Date Insight: Canadian Imperial Bank
Canadian Imperial Bank (NYSE:CM) declared a dividend payable on April 28, 2021 to its shareholders as of February 25, 2021. It was also announced that shareholders of Canadian Imperial Bank's stock as of March 29, 2021 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 Canadian Imperial Bank is set for March 26, 2021. The company's current dividend payout sits at $1.46, equating to a dividend yield of 6.32% 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 Canadian Imperial Bank's Dividend Payouts And Yields
Over the past year, Canadian Imperial Bank has seen its dividend payouts remain the same and its yields climb upward overall. Last year on March 26, 2020 the company's payout sat at $1.46, which has returned to its value today. Canadian Imperial Bank's dividend yield last year was 5.51%, which has since grown by 0.81%.
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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