Published on 9 May 2024 on Simply Wall St. via Yahoo Finance

Is It Smart To Buy Assured Guaranty Ltd. (NYSE:AGO) Before It Goes Ex-Dividend?

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Assured Guaranty Ltd. (NYSE:AGO) is about to go ex-dividend in just 4 days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Therefore, if you purchase Assured Guaranty's shares on or after the 14th of May, you won't be eligible to receive the dividend, when it is paid on the 29th of May.

The company's upcoming dividend is US$0.31 a share, following on from the last 12 months, when the company distributed a total of US$1.24 per share to shareholders. Last year's total dividend payments show that Assured Guaranty has a trailing yield of 1.5% on the current share price of US$82.08. If you buy this business for its dividend, you should have an idea of whether Assured Guaranty's dividend is reliable and sustainable. As a result, readers should always check whether Assured Guaranty has been able to grow its dividends, or if the dividend might be cut.