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10 Stocks Going Ex-Dividend Tuesday
08/12/2013 7:00 am EST
It may seem an anachronism that dividend rate rules exist in this era of high frequency trading, notes Christopher Witrak on Minyanville.com, but since they do, he lists five that reach that date tomorrow.
Many stocks will reach their ex-dividend date tomorrow, which is significant for investors as the seller of the stock on that date, not the buyer, receives the most recent dividend.
A stock must be bought one day before the ex-dividend date to claim any dividends that have been announced but not yet paid. The company determines on the record date, which usually occurs two days after the ex-dividend date, which shareholders qualify for the dividend. Shareholders listed as holders of record after the record date then receive their dividend on the date of payment established by the company. Those purchasing right before the record date forfeit the dividend and normally get the stock for a reduced amount.
It may seem an anachronism in this era of high frequency trading, but the dividend rate rules are in force since it can still take up to three business days for transactions to be credited to and settled in an investor’s account.
Below are five stocks that schedule August 13 as their ex-dividend date. All annual yields are estimated.
ARMOUR Residential REIT (ARR) yields 18.92% annually and has a market cap of $1.643 billion. The real estate investment trust, or REIT, will pay a monthly dividend of $0.07 on August 29, and its monthly yield will be 1.58% based on last Monday’s closing price of $4.44. The REIT has paid a monthly dividend since 2010.
Exelon Corporation (EXC) yields 4.11% annually and has a market cap of $25.83 billion. The utility service holding company will pay a quarterly dividend of $0.31 on September 10, and the quarterly yield will be 1.01% based on yesterday’s closing price of $30.63. The company has paid a quarterly dividend since 1980.
Microsoft (MSFT) yields 2.92% annually and has a market cap $262.53 billion. The global software and hardware company will pay a quarterly dividend of $0.23 on September 12, and the quarterly yield will be 0.73% based on last Monday’s closing price of $31.70. The company has paid a quarterly dividend since the second half of 2003, and each dividend payment has either increased or remained the same from the prior quarter.
Cliffs Natural Resources (CLF) yields 2.87% annually and has market cap of $3.19 billion. The mining and natural resources company will pay a quarterly dividend of $0.15 on September 3, and the quarterly yield will be 0.71% based on last Monday’s closing price of $21. The company has paid a quarterly dividend since the second half of 1989.
Gerdau S.A. (GGB) yields 0.62% annually and has a market cap of $10.95 billion. The global producer of steel products will pay a quarterly dividend of $0.0199 on August 28, and the quarterly yield of the dividend will be 0.31% based on last Monday’s closing price of $6.48. The company has paid a dividend since 1999 and a quarterly dividend since 2003.
These companies also have their ex-dividend date on August 13. All annual yields are estimated.
Duke Realty Corporation (DRE) yields 4.31% annually and will pay a quarterly dividend of $0.17 on August 30.
Cablevision Systems (CVC) yields 3.15% annually and will pay a quarterly dividend of $0.15 on September 5.
DuPont (DD) yields 3.03% annually and will pay a quarterly dividend of $0.45 on September 12.
El DoradoGold (EGO) yields 1.40% annually and will pay a semi-annual dividend of $0.05 on August 26.
Avon Products (AVP) yields 1.09% annually and will pay a quarterly dividend of $0.06 on September 3.
Purchase—and have your broker settle—before the ex-dividend date to secure the dividend.
By Christopher Witrak, Contributor, Minyanville.com
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