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

By Christopher Witrak  OCT 04, 2012 9:50 AM

Darden Restaurants, General Mills, and Verizon 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 5 as their ex-dividend date. All annual yields are estimated.

Verizon Communications (NYSE:VZ) yields 4.49% annually and has market cap of $131.85 billion. The global provider of communications, information, and entertainment products will pay a quarterly dividend of $0.515 on November 1, and its quarterly yield will be 1.11% based on yesterday’s closing price of $46.28. The company has paid a quarterly dividend since 1984. Each dividend payment has either increased or remained the same from the prior quarter.

United Dominion Realty Trust (NYSE:UDR) yields 3.60% annually and has a market cap of $6.12 billion. The real estate investment trust, or REIT, will pay a quarterly dividend of $0.22 on October 31. Its quarterly yield will be 0.90% based on yesterday’s closing price of $24.47. The REIT has paid a quarterly dividend since 1990. The dividend is down from a high of $0.33 in 2008.  

Darden Restaurants (NYSE:DRI) yields 3.59% annually and has a market cap of $7.16 billion. The operator of full-service restaurants in the United States and Canada will pay a quarterly dividend of $0.50 on November 1, and its quarterly yield will be 0.90% based on yesterday’s closing price of $55.68. The company paid a semi-annual dividend from the second half of 1995 to the first half of 2007. After that, Darden switched to a quarterly dividend. Since the second half of 2007, each dividend payment has increased or remained the same. Covanta Holding Corporation (NYSE:CVA) yields 3.54% annually and has a market cap of $2.26 billion. The provider of waste and energy services to municipalities in North America will pay a quarterly dividend of $0.15 on October 17, and its quarterly yield will be 0.88% based on yesterday's closing price of $16.97. The company began paying a quarterly dividend last year.

General Mills (NYSE:GIS) yields 3.29% annually and has a market cap of $25.92 billion. The global provider of branded consumer foods will pay a quarterly dividend of $0.33 on November 1. This dividend results in a quarterly yield of 0.82% based on yesterday's closing price of $40.17. The company has paid a dividend since 1928, and each dividend payment has either increased or remained the same from the prior quarter.

These companies also have their ex-dividend date on October 5. All annual yields are estimated.

Gold Resource Corporation (NYSEAMEX:GORO) yields 3.49% annually and will pay a quarterly dividend of $0.06 on October 23.

OGE Energy (NYSE:OGE) yields 2.81% annually and will pay a quarterly dividend of $0.3925 on October 30.

The Gap (NYSE:GPS) yields 1.36% annually and will pay a quarterly dividend of $0.125 on October 24.

Lincoln National Corporation (NYSE:LNC) yields 1.33% annually and will pay a quarterly dividend of $0.08 on November 1.

Intuit (NASDAQ:INTU) yields 1.11% annually and will pay a quarterly dividend of $0.17 on October 18.

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

Twitter: @ChrisWitrak
Position in GIS.