X Factor: 5 Stocks Reaching Their Ex-Dividend Date on October 3

By Christopher Witrak  OCT 02, 2012 9:40 AM

Bristol-Myers Squibb, General Dynamics, and Sysco Corporation 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. 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 effect 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 October 3 as their ex-dividend date. All annual yields are estimated.

Brandywine Realty Trust (NYSE:BDN) yields 4.96% annually and has a market cap of $1.73 billion. The real estate investment firm will pay a quarterly dividend of $0.15 on October 19. This dividend results in a quarterly yield of 1.24% based on yesterday's closing price of $12.10. The firm has paid a quarterly dividend since 1994. The dividend is down from a high of $0.44 in 2008.

DCT Industrial Trust (NYSE:DCT) yields 4.33% annually and has a market cap of $1.61 billion. The real estate investment trust, or REIT, will pay a quarterly dividend of $0.07 on October 17. Its quarterly yield will be 1.08% based on yesterday’s closing price of $6.46. The REIT has paid a quarterly dividend since the end of 2006. The dividend is down from a high of $0.16 in 2008.

Bristol-Myers Squibb (NYSE:BMY) yields 4.01% annually and has a market cap of $56.94 billion. The biopharmaceutical company with an international clientele will pay a quarterly dividend of $0.34 on November 1, and its quarterly yield will be 1.00% based on yesterday’s closing price of $33.91. The company has paid a quarterly dividend since 1977.

Sysco Corporation (NYSE:SYY) yields 3.42% annually and has market cap of $18.51 billion. The distributor of food in the US, Canada, and Ireland will pay a quarterly dividend of $0.27 on October 26, and its quarterly yield will be 0.86% based on yesterday’s closing price of $31.56. The company has paid a quarterly dividend since 1973. Each dividend payment has either increased or remained the same from the prior quarter.

General Dynamics (NYSE:GD) yields 3.03% annually and has a market cap of $23.78 billion. The aerospace and defense company will pay a quarterly dividend of $0.51 on November 9, and its quarterly yield will be 0.76% based on yesterday's closing price of $67.42. The company has paid a quarterly dividend since 1979. Each dividend payment has either increased or remained the same from the prior quarter.  These companies also have their ex-dividend date on October 3. All annual yields are estimated.

Erie Indemnity (NASDAQ:ERIE) yields 3.43% annually and will pay a quarterly dividend of $0.5525 on October 19.

JPMorgan Chase (NYSE:JPM) yields 2.93% annually and will pay a quarterly dividend of $0.30 on October 31.

BB&T Corporation (NYSE:BBT) yields 2.43% annually and will pay a quarterly dividend of $0.20 on November 1.

Monsanto (NYSE:MON) yields 1.66% annually and will pay a quarterly dividend of $0.0087 on November 13.

American Express (NYSE:AXP) yields 1.39% annually and will pay a quarterly dividend of $0.20 on November 9.

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

Twitter: @ChrisWitrak
No positions in stocks mentioned.