On August 4, 2021, Open Text (NASDAQ:OTEX) declared a dividend payable on September 24, 2021 to its shareholders. Open Text also announced that shareholders on the company's books on or before September 3, 2021 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. Open Text has an ex-dividend date set for for September 2, 2021. The company's current dividend payout is $0.22, which equates to a dividend yield of 1.7% at current price levels.
What Is An Ex-Dividend Date?
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.
Understanding Open Text's Dividend Performance
Over the past year, Open Text has seen its dividend payouts and yields climb upward overall. Last year (September 3, 2020), the company's payout sat at $0.17, which has since increased by $0.05. Open Text's dividend yield last year was 1.54%, which has since grown by 0.16%.
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.
CLICK HERE to find details on Open Text's previous dividends.
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