Published on 3 May 2024 on Simply Wall St. via Yahoo Finance

Should You Buy MGIC Investment Corporation (NYSE:MTG) For Its Upcoming Dividend?

It looks like MGIC Investment Corporation (NYSE:MTG) is about to go ex-dividend in the next four days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Meaning, you will need to purchase MGIC Investment's shares before the 8th of May to receive the dividend, which will be paid on the 21st of May.

The company's next dividend payment will be US$0.115 per share, on the back of last year when the company paid a total of US$0.46 to shareholders. Last year's total dividend payments show that MGIC Investment has a trailing yield of 2.2% on the current share price of US$20.51. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.