MINYANVILLE ORIGINAL Seven 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 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 stocks that schedule September 28 as their ex-dividend date. All annual yields are estimated.
WP Carey & Co.
(NYSE:WPC) yields 5.13% annually and has a market cap of $2.03 billion. The investment management company will pay a quarterly dividend of $0.65 on October 16. This dividend results in a quarterly yield of 1.28% based on yesterday's closing price of $50.66. The company has paid a quarterly dividend since 1998. Each dividend has either increased or remained the same from the prior quarter.
The Bank of Nova Scotia
(NYSE:BNS) yields 4.16% annually. The Canadian bank, which provides personal, commercial, corporate, and investment banking services, has a market cap of $62.48 billion and will pay a quarterly dividend of $0.57 on October 29. Its quarterly yield will be 1.04% based on yesterday’s closing price of $54.83. The company has paid a quarterly dividend since the middle half of 2002. Choice Hotels
(NYSE:CHH) yields 2.33% annually and has a market cap of $1.81 billion. The international hotel franchisor will pay a monthly dividend of $0.185 on October 12, and its monthly yield will be 0.58% based on yesterday's closing price of $31.73. The company paid a quarterly since 2004. Each dividend has either increased or remained the same from the prior quarter.
(NASDAQ:SAFM) yields 1.55% annually and has a market cap of $1.01 billion. The provider of chicken products in the US will pay a quarterly dividend of $0.17 on October 16, and its quarterly yield will be 0.39% based on yesterday's closing price of $43.96. The company has paid a quarterly dividend since 1990. Every dividend has either increased or remained the same from the prior quarter.
(NYSE:A) yields 1.05% annually and has a market cap of $13.48 billion. The provider of bio-analytical and electronic measurement solutions will pay a quarterly dividend of $0.10 on October 24. Its quarterly yield will be 0.26% based on yesterday’s closing price of $38.27. The company paid a one-time dividend in 2006 and began paying a quarterly dividend this year.
These companies also have their ex-dividend date on September 28. All annual yields are estimated.
Magic Software Enterprises
(NASDAQ:MGIC) yields 2.15% annually and will pay a dividend of $0.10 on October 17. This is the second dividend paid by the company.
(NYSE:EXP) yields 0.92% annually and will pay a quarterly dividend of $0.10 on November 11.
Purchase -- and have your broker settle -- before the ex-dividend date to secure the dividend.
(See also: When to Buy Back Apple (NASDAQ:AAPL) Stock if You Removed Exposure.
No positions in stocks mentioned.