Understanding Wells Fargo Utilities's Ex-Dividend Date
Wells Fargo Utilities (AMEX:ERH) declared a dividend payable on February 1, 2021 to its shareholders as of December 18, 2020. It was also announced that shareholders of Wells Fargo Utilities's stock as of January 13, 2021 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. Wells Fargo Utilities has an ex-dividend date planned for January 12, 2021. The company's current dividend payout sits at $0.07. That equates to a dividend yield of 6.71% 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. Most ex-dividend dates operate on a quarterly basis.
Wells Fargo Utilities's Dividend History
Over the past year, Wells Fargo Utilities has seen its dividend payouts remain the same and its yields climb upward overall. Last year on September 11, 2020 the company's payout sat at $0.07, which has returned to its value today. Wells Fargo Utilities's dividend yield last year was 6.53%, which has since grown by 0.18%.
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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