X Factor: 5 Stock Reaching Their Ex-Dividend Date on October 18

By Christopher Witrak  OCT 17, 2012 10:05 AM

Caterpillar, Hormel Foods Corporation, and Hospitality Properties Trust are on the list.

 


MINYANVILLE ORIGINAL Twenty-one 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 18 as their ex-dividend date. All annual yields are estimated.

Hospitality Properties Trust (NYSE:HPT) yields 7.75% annually and has a market cap of $3.00 billion. The hotel real estate investment trust, or REIT, will pay a quarterly dividend of $0.47 on November 21, and its quarterly yield will be 1.94% based on yesterday’s closing price of $24.27. The REIT has paid a quarterly dividend since the second half of 1995, with the exception of 2009, when it paid only one dividend.

Government Properties Income Trust (NYSE:GOV) yields 7.48% annually and has a market cap of $1.08 billion. The office REIT will pay a quarterly dividend of $0.43 on November 21, and its quarterly yield will be 1.87% based on yesterday’s closing price of $23.00. The REIT has paid a quarterly dividend since the second half of 2009.

Senior Housing Properties Trust (NYSE:SNH) yields 6.97% annually and has market cap of $3.95 billion. The senior housing properties REIT will pay a quarterly dividend of $0.39 on November 20, and its quarterly yield will be 1.74% based on yesterday’s closing price of $22.38. The company has paid a quarterly dividend since 2000. Each dividend payment has either increased or remained the same from the prior quarter. Caterpillar (NYSE:CAT) yields 2.45% annually and has a market cap of $55.50 billion. The manufacturer and seller of of construction and mining equipment will pay a quarterly dividend of $0.52 on November 20. Its quarterly yield will be 0.61% based on yesterday’s closing price of $84.96. Caterpillar paid a quarterly dividend from 1962 to 1969, and then began paying a quarterly dividend again from 1982 onwards.

Hormel Foods Corporation (NYSE:HRL) yields 2.04% annually and has a market cap of $7.72 billion. The producer and marketer of various meat and food products will pay a quarterly dividend of $0.15 on November 15. This dividend results in a quarterly yield of 0.51% based on yesterday's closing price of $29.37. The company has paid a quarterly dividend since the end of 1991.

These companies also have their ex-dividend date on October 18. All annual yields are estimated.

Washington Post (NYSE:WPO) yields 2.71% annually and will pay a quarterly dividend of $2.45 on November 2.

Graco (NYSE:GGG) yields 1.85% annually and will pay a quarterly dividend of $0.225 on November 7.

CVS Caremark Corporation (NYSE:CVS) yields 1.39% annually and will pay a quarterly dividend of $0.1625 on November 2.

Apache Corporation (NYSE:APA) yields 0.78% annually and will pay a quarterly dividend of $0.17 on November 21.

C.R. Bard (NYSE:BCR) yields 0.78% annually and will pay a quarterly dividend of $0.20 on November 2.

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

Twitter: @ChrisWitrak
No positions in stocks mentioned.