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Understanding Severn Bancorp's Ex-Dividend Date

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Benzinga Insights
·2 min read
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On November 24, 2020, Severn Bancorp (NASDAQ:SVBI) declared a dividend payable on December 15, 2020 to its shareholders. Severn Bancorp also announced that shareholders on the company's books on or before December 8, 2020 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. Severn Bancorp, whose current dividend payout is $0.04, has an ex-dividend date set at December 7, 2020. The payout equates to a dividend yield of 2.37% at current price levels.

The Significance Of 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. Most ex-dividend dates operate on a quarterly basis.

Severn Bancorp's Dividend History

Over the past year, Severn Bancorp has seen its dividend payouts remain the same and its yields climb upward overall. Last year on December 5, 2019 the company's payout sat at $0.04, which has returned to its value today. Severn Bancorp's dividend yield last year was 1.83%, which has since grown by 0.54%.
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.

To read more news on Severn Bancorp click here.

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