Thirteen 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. Dividends are paid on the dividend record date, usually two business days after the ex-dividend date.
Purchasers must own a stock several days prior to the dividend record date to get the dividend. Those purchasing right before the 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 effect since it can still take up to three business days for transactions to be credited to and settled in an investor’s account. (See also: 10 Undervalued Dividend-Paying Stocks With Momentum
Below are the five stocks with the highest estimated annualized dividend yield that schedule August 28 as their ex-dividend date.
(RNDY) yields 11.86% annually and has a market cap of $354.29 million. The Midwest-based grocer will pay a quarterly dividend of $0.23 on September 6. Its quarterly yield will be 2.96% based on Friday’s closing price of $7.76. This is only the second dividend paid by Roundy’s, but the company has decreased the payout from $0.29.
Roundy’s sees problems for its business for the remainder of the year due to weaker consumer spending. It missed
analysts' expectations for the second quarter despite earning more than the prior-year quarter. Second-quarter net income was $18.9 million, or $0.42 per share, compared to $17.7 million, or $0.58 per share, last year. Revenue increased 1.7% from the prior-year quarter to $996.8 million. Analysts had expected net income of $0.43 per share on $999.5 million in revenue. The company lowered its earnings forecast for 2012 from between $1.30 and $1.42 to between $1.10 and $1.24.
(VLCCF) yields 10.26% annually and has a market cap of $167.63 million.The international ship-owning company will pay a dividend of $0.175 for its third quarter on September 12. Its quarterly yield will be 2.57% based on Friday’s closing price of $6.82. Since the second quarter of 1997, the company has paid a quarterly dividend. However, the amount has dropped over the last two quarters from $0.50 for the first quarter of 2012.
A weakening global economy has hurt exports and the demand for ships. The company reported a second-quarter loss of $3.3 million, or $0.13 per share, compared to a profit of $7.1 million, or $0.29 per share, for the first quarter of 2012. A large portion of the loss came from the unexpected termination of the Golden Zhejiang time charter, which cost Knightbridge $5.1 million.
(ACNB) yields 5.26% annually and has a market cap of $86.70 million. The financial holding company will pay a quarterly dividend of $0.19 on September 14. Its quarterly yield will be 1.31% based on Friday’s closing price of $14.45. The company has paid a steady quarterly dividend since the fourth quarter of 2001.
The holding company raised
its net income by 1% from $2.10 million in the prior-year quarter to $2.12 million.
Philippine Long Distance Telephone Co.
(PHI) yields 4.43% annually. The company is the largest telecommunications company and largest company in the Philippines with a market cap of $13.68 billion and pays a semi-annual dividend of 60 Philippine pesos, or $1.42, on October 5. Its semi-annual yield will be 2.21% based on Friday’s closing price of $64.16. The company first paid a quarterly dividend from 1989 to the first quarter of 2001. It resumed paying a semi-annual dividend in 2005.
A saturated mobile telephone market has hurt the company. It posted
a net income of $225 million for the second quarter, and this is a 11% drop from the same quarter last year when the company reported a profit of $251.40 million. Analysts had expected a profit of $239.54 million. The company is looking to grow its broadband services to offset the slowing traditional mobile phone business.
(NICK) yields 3.56% annually and has a market cap of $163.67 million. The financial services company pays a quarterly dividend of $0.12 on September 6. This dividend will result in quarterly yield of 0.89% based on Friday’s closing price of $13.47. It began paying dividends in 2003, but paused in 2005. Since the third quarter of 2011, it has resumed a quarterly dividend, and it raised the dividend from $0.10 in the last quarter.
In the first quarter of its 2013 fiscal year, which ended on June 30, 2012, the company reported
earnings of $0.44 per share. In its fourth quarter of 2012, the company reported earnings of $1.85 per share. Relative to the same quarter last year, profits slightly increased
from $5.30 million to $5.37 million. Revenue increased from $16.63 million in the prior-year quarter to $17.28 million.
These companies also have their ex-dividend date on August 28. All yields are estimated annualized yields.
(GS) yields 1.75% annually and will pay a $0.46 dividend on September 26.
(HD) yields 2.04% annually and will pay a $0.29 dividend on September 13.
(SLW) yields 1.17% annually and will pay a $0.10 dividend on September 13.
(WY) yields 2.46% annually and will pay a $0.14 dividend on September 14.
(EFX) yields 1.53% annually and will pay an $0.18 dividend on September 14.
Purchase -- and have your broker settle -- before the ex-dividend date to secure the dividend.
(See also: 11 High-Quality Dividend-Paying Stocks to Consider Ahead of First Quarter
No positions in stocks mentioned.