Benzinga | Nov 17, 2020 10:17AM EST

Understanding Federal Signal's Ex-Dividend Date

Federal Signal (NYSE: FSS) declared a dividend payable on December 1, 2020 to its shareholders as of October 27, 2020. It was also announced that shareholders of Federal Signal's stock as of November 19, 2020 are entitled to the dividend. The stock is expected to become ex-dividend 1 business day(s) before the record date. Federal Signal, which has a current dividend per share of $0.08, has an ex-dividend date scheduled for November 18, 2020. That equates to a dividend yield of 1.02% at current price levels.

The Significance Of 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 Federal Signal's Dividend Payouts And Yields

Over the past year, Federal Signal has seen its dividend payouts remain the same and its yields climb upward overall. Last year on November 12, 2019 the company's payout sat at $0.08, which has returned to its value today. Federal Signal's dividend yield last year was 0.92%, which has since grown 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.

Click here to find details on Federal Signal's previous dividends.