Benzinga | Jan 27, 2021 10:43AM EST

Analyzing Plains All American's Ex-Dividend Date

On January 7, 2021, Plains All American (NASDAQ:PAA) announced shareholders can expect to receive a dividend payable on February 12, 2021. The stock will then go ex-dividend 1 business day(s) before the record date. Plains All American, whose current dividend payout is $0.18, has an ex-dividend date set at January 28, 2021. The payout equates to a dividend yield of 7.86% at current price levels.

The Significance Of 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.

Understanding Plains All American's Dividend Payouts And Yields

Over the past year, Plains All American has seen its dividend payouts descend downward and yields trend upward. Last year on January 30, 2020 the company's payout sat at $0.36, which has since decreased by $0.18. Plains All American's dividend yield last year was 7.48%, which has since grown by 0.38%.

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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