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 stocks that schedule November 26 as their ex-dividend date. All annual yields are estimated.
(NYSE:STM) yields 5.84% annually and has a market cap of $5.25 billion. STMicroelectronics, an independent semiconductor company, engages in the design, development, manufacture, and marketing of a range of semiconductor integrated circuits and discrete devices. It will pay a quarterly dividend of $0.085 on December 4, and its quarterly yield will be 1.46% based on yesterday’s closing price of $5.82. The company has paid a dividend since 1999.
(NYSE:WM) yields 4.46% annually and has a market cap $14.78 billion. Waste Management, through its subsidiaries, provides waste management services to residential, commercial, industrial, and municipal customers in North America. It will pay a quarterly dividend of $0.355 on December 14, and its quarterly yield will be 1.11% based on yesterday's closing price of $31.82. The company has paid a dividend since 1998 and a quarterly dividend since 2004. Every dividend payment since then has either increased or remained the same from the prior quarter.
(NYSE:GME) yields 3.78% annually and has a market cap of $3.20 billion. The video game retailer will pay a quarterly dividend of $0.25 on December 12, and its quarterly yield will be 0.94% based on yesterday’s closing price of $26.47. The company began paying a dividend this year.
(NASDAQ:MAT) yields 3.43% annually and has market cap of $12.42 billion. Mattel, together with its subsidiaries, designs, manufactures, and markets various toy products. It will pay a quarterly dividend of $0.31 on December 14, and its quarterly yield will be 0.86% based on yesterday’s closing price of $36.19. The company first paid a dividend in 1982 and 1983. It resumed paying a dividend in 1990 and the recent dividend payments have been quarterly since 2011.
(NYSE:VIV) has a market cap of $25.60 billion. Telefonica Brasil provides fixed-line telecommunications services to residential and commercial customers in the state of Sao Paulo, Brazil. It will pay a semi-annual dividend of $0.5087, but the pay date has not been announced. Its semi-annual yield will be 2.19% based on yesterday’s closing price of $23.20. The company has paid a dividend since 1999.
These companies also have their ex-dividend date on November 26. All annual yields are estimated.
Sun Life Financial
(NYSE:SLF) yields 5.38% annually and will pay a quarterly dividend of $0.36 on December 31.
(NYSE:MHP) yields 1.99% annually and will pay a quarterly dividend of $0.255 on December 12.
Everest Re Group
(NYSE:RE) yields 1.84% annually and will pay a quarterly dividend of $0.48 on December 12.
(NYSE:THI) yields 1.80% annually and will pay a quarterly dividend of $0.21 on December 12.
(NYSE:SWM) yields 1.65% annually and will pay a quarterly dividend of $0.15 on December 28.
Purchase -- and have your broker settle
-- before the ex-dividend date to secure the dividend.
No positions in stocks mentioned.