On November 12, 2020, Algonquin Power (NYSE:AQN) declared a dividend payable on January 15, 2021 to its shareholders. Algonquin Power also announced that shareholders on the company's books on or before December 31, 2020 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. The ex-dividend date for Algonquin Power will be on December 30, 2020. The company's current dividend payout is at $0.16. That equates to a dividend yield of 3.79% 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. Algonquin Power's Dividend Performance

Over the past year, Algonquin Power has seen its dividend payouts climb upward and its yields trend downward. Last year on December 30, 2019 the company's payout sat at $0.14, which has since increased by $0.01. Algonquin Power's dividend yield last year was 4.16%, which has since decreased by 0.37%.

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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