X Factor: 5 High-Yield Stocks Reaching Their Ex-Dividend Date on October 29

By Christopher Witrak  OCT 26, 2012 9:45 AM

Prospect Capital Corporation, Brookfield Canada Office Properties, and Omega Healthcare Investors are on the list.

 


MINYANVILLE ORIGINAL Many stocks will reach their ex-dividend date next Monday, 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 high-yielding stocks that schedule October 29 as their ex-dividend date. All annual yields are estimated.

Prospect Capital Corporation (NASDAQ:PSEC) yields 10.33% annually and has a market cap of $2.08 billion. The business development company will pay a monthly dividend of $0.1016 on November 22, and its monthly yield will be 0.85% based on yesterday’s closing price of $11.93. The company paid a quarterly dividend from the end of 2004 through 2009, and it switched to a monthly dividend in 2010.

Brookfield Canada Office Properties (NYSE:BOXC) yields 8.54% annually and has a market cap of $2.73 billion. The independent equity real estate investment trust, or REIT, will pay a monthly dividend of $0.0975 on November 15, and its monthly yield will be 0.33% based on yesterday’s closing price of $29.25. The REIT began paying a monthly dividend this year.

Omega Healthcare Investors (NYSE:OHI) yields 7.43% annually and has market cap of $2.57 billion. The REIT operating in the US will pay a quarterly dividend of $0.44 on November 15, and its quarterly yield will be 1.86% based on yesterday’s closing price of $23.64. The company paid a quarterly dividend from the end of 1992 to 2000. It began paying a quarterly dividend again at the end of 2003, and since 2003, each dividend payment has either increased or remained the same from the prior quarter. Atlantic Power Corp. (NYSE:AT) yields 7.36% annually and has a market cap of $1.77 billion. Atlantic Power Corp. operates as a power generation and infrastructure company with a portfolio of assets in the United States and Canada. It will pay a monthly dividend of $0.0958 on November 30, and its quarterly yield will be 0.64% based on yesterday’s closing price of $14.86. The company began paying a monthly dividend in 2010.

Copano Energy (NASDAQ:CPNO) yields 7.21% annually and has a market cap of $2.31 billion. The provider of midstream services to natural gas producers in the US will pay a quarterly dividend of $0.575 on November 8, and its quarterly yield will be 1.80% based on yesterday's closing price of $31.89. The company has paid a quarterly dividend since 2005, 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 29. All annual yields are estimated.

Questcor Pharmaceuticals (NASDAQ:QCOR) yields 4.33% annually and will pay a quarterly dividend of $0.20 on November 15. This will be the company’s first dividend.

Kinder Morgan (NYSE:KMI) yields 4.11% annually and will pay a quarterly dividend of $0.36 on November 15

ConAgra Foods (NYSE:CAG) yields 3.53% annually and will pay a quarterly dividend of $0.25 on December 4.

Texas Instruments (NASDAQ:TXN) yields 2.42% annually and will pay a quarterly dividend of $0.21 on November 19.

Morgan Stanley (NYSE:MS) yields 1.17% annually and will pay a quarterly dividend of $0.05 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.