Huntington Bancshares Incorporated (NASDAQ:HBAN) announces ex-dividend date
Huntington Bancshares Incorporated (NASDAQ:HBAN) will commence trading ex-dividend on 27 June 2013. A cash-dividend payment of $21.25/share is scheduled to be paid on 15 July 2013. Stakeholders who have bought the company stock before the announced date will be eligible to receive this cash dividend payment. This will be the 20th quarter that HBAN has paid this same dividend.
What is ex-dividend?
In order to understand when a particular share goes ex-dividend, one has to understand what exactly a dividend is. It is a taxable payment that a company gives its shareholders and these are generally paid in cash, in ETF or cheque form. In some cases, shareholders may also choose to receive the dividend in shares form and add to their portfolio. When they do this, it also mans that they have faith in the company and in its ability to be profitable. When a share goes ex-dividend, it means that the payment has been credited to the shareholder. If the shareholder chooses to sell these shares, the buyer is not eligible to receive the payment and will have to wait it out till the next dividend payment.
An investor’s decision
The investor will have to decide if he/she wants to purchase the shares within the dividend period or post the share goes ex-dividend. Each of these options has its plusses and minuses. Normally, a stock’s price will fall on the day of the ex-dividend. This allows the potential share-buyer to purchase the shares at a lower price. In effect, this is an incentive since they will not be receiving the benefit of any dividend payment till the next dividend-date. On the other hand, if the investor chooses buy the shares before they become ex-dividend they will generally end up paying a premium but will profit from the dividend payment.
The fact that Huntington Bancshares Incorporated (NASDAQ:HBAN) has been paying this same dividend for 20 quarters now, indicates that the company has had a robust growth and is moving forward strongly. It is generally well-established companies that pay dividends and certain investors also prefer investing in companies such as HBAN.