X Factor: 5 High-Yield Stocks Reaching Their Ex-Dividend Date on September 26

By Christopher Witrak  SEP 25, 2012 9:45 AM

Windstream Corporation, Capstead Mortgage Corp., and Hatteras Financial Corp. are on the list.

 


MINYANVILLE ORIGINAL 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. 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 effectsince 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 high-yield stocks that schedule September 26 as their ex-dividend date. All annual yields are estimated.

Hatteras Financial Corporation (NYSE:HTS) yields 10.83% annually. The externally-managed mortgage real estate investment trust, or REIT, has a market cap of $2.90 billion and will pay a quarterly dividend of $0.80 on October 26. Its quarterly yield will be 2.71% based on yesterday’s closing price of $29.55. The company has paid a quarterly dividend since 2008, and the dividend has declined from its high of $1.20 in the first quarter of 2010.

Capstead Mortgage Corporation (NYSE:CMO) yields 9.88% annually and has a market cap of $1.44 billion. The self-managed real estate investment trust will pay a quarterly dividend of $0.36 on October 19. This dividend results in a quarterly yield of 2.47% based on yesterday's closing price of $14.58. The REIT has paid a quarterly dividend since the end of 1987, except for 1998 when it paid a dividend only twice. The dividend is down from a recent high of $0.58 in 2009. Windstream Corporation (NASDAQ:WIN) yields 9.12% annually and has a market cap of $6.44 billion. Windstream provides communications and technology solutions, such as cloud computing and managed services, to businesses in the US, and it provides phone services to consumers mostly in rural areas. It will pay a quarterly dividend of $0.25 on October 15, and its quarterly yield will be 2.28% based on yesterday's closing price of $10.96. The company has paid a dividend quarterly dividend since 2005.

Atlantic Power Group (NYSE:AT) yields 7.37% annually and has a market cap of $1.77 billion. The power generation and infrastructure company with assets in the United States and Canada will pay a monthly dividend of $0.0958 on October 31. Its monthly yield will be 0.65% based on yesterday’s closing price of $14.85. The company has paid a monthly dividend since the middle of 2010.

Starwood Property Trust (NYSE:STWD) yields 7.28% annually and has a market cap of $2.82 billion. The trust originates, invests in, finances, and manages commercial mortgage loans, commercial mortgage-backed securities, and other commercial real estate-related debt investments. It will pay a quarterly dividend of $0.44 on October 15. Its quarterly yield will be 1.82% based on yesterday’s closing price of $24.17. The trust has paid a quarterly dividend since the second half of 2009.

These companies also have their ex-dividend date on September 26. All annual yields are estimated.

Staples (NASDAQ:SPLS) yields 3.56% annually and will pay a quarterly dividend of $0.11 on October 18.

US Bancorp (NYSE: USB) yields 2.28% annually and will pay a quarterly dividend of $0.195 on October 15.

Nucor Corporation (NYSE:NUE) yields 3.69% annually and will pay a quarterly dividend of $0.365 on November 9.

Fifth Third Bancorp (NASDAQ:FITB) yields 2.55% annually and will pay a quarterly dividend of $0.10 on October 18.

Xerox Corporation (NYSE:XRX) yields 2.20% annually and will pay a quarterly dividend of $0.0425 on October 31.

Purchase -- and have your broker settle -- before the ex-dividend date to secure the dividend.

Twitter: @ChrisWitrak
No positions in stocks mentioned.