X Factor: 5 Stocks Reaching Their Ex-Dividend Date on October 25

By Christopher Witrak  OCT 24, 2012 10:25 AM

QR Energy, NGL Energy Partners, and Unum Group 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 25 as their ex-dividend date. All annual yields are estimated.

QR Energy (NYSE:QRE) yields 9.54% annually and has a market cap of $913.64 million. QR Energy engages in the acquisition, exploitation, development, and production of onshore crude oil and natural gas properties in the United States. It will pay a quarterly dividend of $0.4875 on November 9, and its quarterly yield will be 2.39% based on yesterday’s closing price of $20.43. The company has paid a quarterly dividend since last year.

NGL Energy Partners (NYSE:NGL) yields 7.36% annually and has a market cap of $1.62 billion. NGL engages in propane and other natural gas liquids businesses in the United States. It will pay a quarterly dividend of $0.45 on November 14, and its monthly yield will be 1.84% based on yesterday’s closing price of $24.45. The company began paying a quarterly dividend in the second half of last year.

Unum Group (NYSE:UNM) yields 2.54% annually and has market cap of $5.73 billion. The provider of group and individual disability insurance in the U.S. and the U.K. will pay a quarterly dividend of $0.13 on November 16, and its quarterly yield will be 0.64% based on yesterday’s closing price of $20.46. The company has paid a quarterly dividend since 1987. The Bank of New York Mellon Corporation (NYSE:BK) yields 2.13% annually and has a market cap of $28.60 billion. The global financial services company will pay a quarterly dividend of $0.13 on November 6, and its quarterly yield will be 0.53% based on yesterday's closing price of $24.47. The company has paid a quarterly dividend since the end of 1987.

Fastenal Company (NYSE:FAST) yields 1.90% annually and has a market cap of $13.07 billion. The global wholesaler and retailer of industrial and construction supplies will pay a quarterly dividend of $0.21 on November 26, and its quarterly yield will be 0.48% based on yesterday’s closing price of $44.11. The company paid a dividend in 1988 and continued paying a dividend in 1991. In 2011, the company switched to a quarterly dividend.

These companies also have their ex-dividend date on October 25. All annual yields are estimated.

Marcus (NYSE:MCS) yields 3.06% annually and will pay a quarterly dividend of $0.085 on November 15.

National Western Life Insurance (NASDAQ:NWLI) yields 0.26% annually and will pay a quarterly dividend of $0.36 on December 3.

Optical Cable Corporation (NASDAQ:OCC) yields 1.36% annually and will pay a quarterly dividend of $0.015 on November 15.

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

Twitter: @ChrisWitrak
No positions in stocks mentioned.