X Factor: 5 Stocks Reaching Their Ex-Dividend Date on October 23

By Christopher Witrak  OCT 22, 2012 10:25 AM

Pembina Pipeline Corporation, MVC Capital, and Royal Bank of Canada are on the list.

 


MINYANVILLE ORIGINAL Eight 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 23 as their ex-dividend date. All annual yields are estimated.

Pembina Pipeline Corporation (NYSE:PBA) yields 5.74% annually and has a market cap of $8.14 billion. The energy transportation and service provider in Canada will pay a monthly dividend of $0.135 on November 15, and its monthly yield will be 0.47% based on Friday’s closing price of $28.80. The company began paying a quarterly dividend this year.  

MVC Capital (NYSE:MVC) yields 4.31% annually and has a market cap of $302.06 million. MVC Capital is a Business Development Company specializing in acquisition financing, management buyouts, leveraged build-ups, corporate partnerships, PIPE transactions, going private transactions, private company recapitalizations, operational turnarounds, and growth and expansion capital transaction financing. It will pay a quarterly dividend of $0.135 on October 31, and its quarterly yield will be 1.08% based on Friday's closing price of $12.53. The company paid a dividend in 2000 and 2001 and had paid a quarterly dividend since the end of 2004.

Royal Bank of Canada (NYSE:RY) yields 4.07% annually and has market cap of $85.02 billion. Royal Bank of Canada is a provider of personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services under the RBC name worldwide. It will pay a quarterly dividend of $0.60 on November 23, and its quarterly yield will be 1.02% based on Friday’s closing price of $58.91. The bank has paid a quarterly dividend since the second half of 1996. ADTRAN (NASDAQ:ADTN) yields 2.27% annually and has a market cap of $998.33 million. The company designs, manufactures, markets, and services communications network solutions that enable voice, data, video, and Internet communications across wireline and wireless networks worldwide. It will pay a quarterly dividend of $0.09 on November 8, and its quarterly yield will be 2.27% based on Friday’s closing price of $15.83. The company has paid a quarterly dividend since 2003.

Kaiser Aluminum (NASDAQ:KALU) yields 1.72% annually and has a market cap of $1.11 billion. The producer and seller of semi-fabricated specialty aluminum products will pay a quarterly dividend of $0.25 on November 15, and its quarterly yield will be 0.43% based on Friday’s closing price of $58.19. The company has paid a quarterly dividend since the second half of 2007.  

These companies also have their ex-dividend date on October 23. All annual yields are estimated.

Lakeland Financial Corporation (NYSE:LKFN) yields 2.62% annually and will pay a quarterly dividend of $0.17 on November 5.

Solar Senior Capital (NASDAQ:SUNS) yields 7.84% annually and will pay a quarterly dividend of $0.1175 on November 2.

Xinyuan Real Estate (NYSE:XIN) yields 1.22% annually and will pay an annual dividend of $0.0375 on October 31.

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

Twitter: @ChrisWitrak
No positions in stocks mentioned.