MINYANVILLE ORIGINAL Many stocks will reach their ex-dividend date on Wednesday, 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-yield stocks that schedule November 28 as their ex-dividend date. All annual yields are estimated.
(NASDAQ:CTCM) yields 14.87% annually and has market cap of $1.37 billion. CTC Media, together with its subsidiaries, operates as an independent media company. It will pay a quarterly dividend of $0.13 on December 28, and its quarterly yield will be 1.59% based on Friday’s closing price of $8.61. The company has paid a quarterly dividend since 2010.
Prospect Capital Corporation
(NASDAQ:PSEC) yields 11.39% annually and has a market cap of $1.87 billion. The business development company will pay a monthly dividend of $0.1017 on December 20, and its monthly yield will be 0.95% based on Friday’s closing price of $10.71. The company has paid a dividend since the end of 2004, and it began paying a monthly dividend in 2010.
Atlantic Power Corporation
(NYSE:AT) yields 9.07% annually and has a market cap of $1.42 billion. Atlantic Power Corporation 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 December 31, and its quarterly yield will be 0.80% based on Friday's closing price of $12.02. The company has paid a monthly dividend since 2010.
Brookfield Canada Office Properties
(NYSE:BOXC) yields 8.72% annually and has a market cap of $2.69 billion. The independent equity real estate investment trust, or REIT, will pay a monthly dividend of $0.0975 on December 14, and its monthly yield will be 0.34% based on Friday’s closing price of $28.90. The REIT began paying a monthly dividend this year. TransAlta
(NYSE:TAC) yields 7.59% annually and has a market cap of $3.89 billion. TransAlta operates as a non-regulated electricity generation and energy marketing company. It will pay a quarterly dividend of $0.29 on January 1, and its quarterly yield will be 1.90% based on Friday’s closing price of $15.28. The company has paid a quarterly dividend since the second half of 2001. The dividend is down from a high of $0.30 in 2011.
These companies also have their ex-dividend date on November 28. All annual yields are estimated.
(NYSE:KO) yields 2.69% annually and will pay a quarterly dividend of $0.255 on December 17.
Barrick Gold Corporation
(NYSE:ABX) yields 2.25% annually and will pay a semi-annual dividend of $0.20 on December 17.
(NYSE:ACI) yields 1.81% annually and will pay a quarterly dividend of $0.03 on December 14.
(NYSE:GS) yields 1.66% annually and will pay a quarterly dividend of $0.50 on December 28.
(NYSE:L) yields 0.61% annually and will pay a quarterly dividend of $0.0625 on December 14.
Purchase -- and have your broker settle
-- before the ex-dividend date to secure the dividend.
No positions in stocks mentioned.