Understanding CIT Group's Ex-Dividend Date
CIT Group (NYSE:CIT) declared a dividend payable on February 19, 2021 to its shareholders as of January 22, 2021. It was also announced that shareholders of CIT Group's stock as of February 5, 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 CIT Group is set for February 4, 2021. The company's current dividend payout sits at $0.35, equating to a dividend yield of 3.54% at current price levels.
What Are Ex-Dividend Dates?
An ex-dividend date is when a company's shares stop trading with its current dividend payout in preparation for the company to announce a new one. 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 CIT Group's Dividend Payouts And Yields
Over the past year, CIT Group has seen its dividend payouts remain the same and its yields climb upward overall. Last year on February 6, 2020 the company's payout sat at $0.35, which has returned to its value today. CIT Group's dividend yield last year was 3.09%, which has since grown by 0.45%.
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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