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 force 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 10 as their ex-dividend date. All annual yields are estimated.
MFA Mortgage Investments
(NYSE:MFA) yields 9.76% annually and has a market cap of $3.08 billion. The real estate investment trust, or REIT, will pay a quarterly dividend of $0.21 on October 31. Its quarterly yield will be 2.44% based on yesterday’s closing price of $8.61. The REIT has paid a quarterly dividend since 1998.
(NYSE:ACN) yields 2.28% annually and has a market cap of $45.19 billion. The global management consulting, technology services, and outsourcing company will pay a semi-annual dividend of $0.81 on November 15, and its semi-annual yield will be 1.14% based on yesterday's closing price of $71.04. The company began paying an annual dividend in 2005 and switched to a semi-annual dividend in 2010.
(NYSE:FL) yields 2.03% annually and has a market cap of $5.36 billion. The retailer of athletic footwear and apparel will pay a quarterly dividend of $0.18 on October 26. This dividend results in a quarterly yield of 0.51% based on yesterday's closing price of $35.52. The retailer paid a quarterly dividend from 1970 to the first quarter of 1995. Foot Locker resumed paying a quarterly dividend beginning in 2003. Since then, each dividend payment has either increased or remained the same from the prior quarter. Yum Brands
(NYSE:YUM) yields 2.00% annually and has a market cap of $30.51 billion. The global quick service restaurant company will pay a quarterly dividend of $0.335 on November 2, and quarterly yield will be 0.50% based on yesterday’s closing price of $66.94. The company has paid a quarterly dividend since the second half of 2004. Each dividend payment has either increased or remained the same from the prior quarter.
(NYSE:MAS) yields 1.93% annually and has market cap of $5.56 billion. The manufacturing and installer of home improvements and building products in North America and Europe will pay a quarterly dividend of $0.075 on November 5, and its quarterly yield will be 0.48% based on yesterday’s closing price of $15.57. The company has paid a quarterly dividend since the second half of 1983. The dividend is down from a high of $0.24 in 2009.
These companies also have their ex-dividend date on October 10. All annual yields are estimated.
(NYSE:PLL) yields 1.55% annually and will pay a quarterly dividend of $0.25 on November 2.
Smith & Nephew
(NYSE:SNN) yields 1.43% annually and will pay a semi-annual dividend of $0.485 on October 30.
(NYSE:GG) yields 1.17% annually and will pay a quarterly dividend of $0.045 on October 22.
(NASDAQ:ORCL) yields 0.77% annually and will pay a quarterly dividend of $0.06 on November 2.
(NASDAQ:MORN) yields 0.63% annually and will pay a quarterly dividend of $0.10 on October 31.
Purchase -- and have your broker settle
-- before the ex-dividend date to secure the dividend.
No positions in stocks mentioned.