On March 24, 2021, Ready Capital (NYSE:RC) declared a dividend payable on April 30, 2021 to its shareholders. Ready Capital also announced that shareholders on the company’s books on or before April 5, 2021 are entitled to the dividend. The stock will then go ex-dividend 2 business day(s) before the record date. Ready Capital, which has a current dividend per share of $0.1, has an ex-dividend date scheduled for April 1, 2021. That equates to a dividend yield of 3.0% at current price levels.
The Significance Of Ex-Dividend Dates
Ex-dividend dates are when company shares stop trading with their current dividend payouts in preparation for those companies to announce new ones. 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.
Ready Capital’s Dividend History
Over the past year, Ready Capital has seen its dividend payouts and yields descend downward overall. Last year on June 29, 2020 the company’s payout sat at $0.25, which has since decreased by $0.15. Ready Capital’s dividend yield last year was 11.93%, which has since declined by 8.93%.
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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