Benzinga | Dec 30, 2020 10:19AM EST

Analyzing American Homes 4 Rent's Ex-Dividend Date

On November 12, 2020, American Homes 4 Rent (NYSE:AMH) announced shareholders can expect to receive a dividend payable on January 11, 2021. The stock will then go ex-dividend 2 business day(s) before the record date. American Homes 4 Rent, which has a current dividend per share of $0.05, has an ex-dividend date scheduled for December 31, 2020. That equates to a dividend yield of 0.67% at current price levels.

What Are Ex-Dividend Dates?

Ex-dividend dates signal when company shares cease to trade with their current dividend payouts. There is a small intermission period before companies announce new dividends. 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.

American Homes 4 Rent's Dividend Performance

Over the past year, American Homes 4 Rent has seen its dividend payouts remain the same and its yields trend downward. Last year on December 31, 2019 the company's payout sat at $0.05, which has returned to its value today. American Homes 4 Rent's dividend yield last year was 0.77%, which has since decreased by 0.1%.

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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