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

By Christopher Witrak  NOV 29, 2012 10:05 AM

Frontier Communications, Wal-Mart Stores, and Coach are on the list.

 


MINYANVILLE ORIGINAL Many stocks will reach their ex-dividend date next 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 stocks that schedule December 5 as their ex-dividend date. All annual yields are estimated.

Frontier Communications (NASDAQ:FTR) yields 8.71% annually and has a market cap of $4.69 billion. Frontier Communications Corporation provides communications services for residential and business customers in the United States. It will pay a quarterly dividend of $0.10 on December 31, and its quarterly yield will be 2.13% based on yesterday’s closing price of $4.70. The company has paid a quarterly dividend since 1992, and the dividend is down from a high of $0.25 in 2010.

Wal-Mart Stores (NYSE:WMT) yields 2.25% annually and has a market cap of $237.50 billion. The global operator of retail stores will pay a quarterly dividend of $0.3975 on December 27, and its quarterly yield will be 0.56% based on yesterday’s closing price of $70.56. Wal-Mart has paid a dividend since 1974, and the dividend has increased every year.

Coach (NYSE:COH) yields 2.00% annually and has a market cap of $16.92 billion. Coach engages in the design, marketing, and distribution of handbags, accessories, wearables, footwear, jewelry, sunwear, travel bags, watches, and fragrances for women and men in the United States and internationally. It will pay a quarterly dividend of $0.30 on January 2, and its quarterly yield will be 0.50% based on yesterday’s closing price of $60.15. The company has paid a quarterly dividend since 2009, and the dividend has increased each year. Qualcomm (NASDAQ:QCOM) yields 1.60% annually and has a market cap of $107.81 billion. Qualcomm designs, develops, manufactures, and markets digital telecommunications products and services. It will pay a quarterly dividend of $0.25 on December 21, and its quarterly yield will be 0.40% based on yesterday’s closing price of $62.65. The company has paid a quarterly dividend since 2003, and each dividend payment has either increased or remained the same from the prior quarter.

Bank of America (NYSE:BAC) yields 0.41% annually and has a market cap of $106.38 billion. Bank of America, through its subsidiaries, provides various banking and financial products and services to individual consumers, small-and middle-market businesses, institutional investors, corporations, and governments in the United States and internationally. It will pay a quarterly dividend of $0.01 on December 28, and its quarterly yield will be 0.10% based on yesterday’s closing price of $9.76. Bank of America has paid a quarterly dividend since 1986, and the dividend is down form a high of $0.64 in 2008.

These companies also have their ex-dividend date on December 5. All annual yields are estimated.

Gannett Company (NYSE:GCI) yields 4.50% annually and will pay a quarterly dividend of $0.20 on January 2.

Kimberly-Clark Corporation (NYSE:KMB) yields 3.44% annually and will pay a quarterly dividend of $0.74 on January 3.

Johnson Controls (NYSE:JCI) yields 2.76% annually and will pay a quarterly dividend of $0.19 on December 28.

Baxter International (NYSE:BAX) yields 2.73% annually and will pay a quarterly dividend of $0.45 on December 21.

Carnival (NYSE:CUK) yields 2.47% annually and will pay a special dividend of $0.50 on December 28.

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

Twitter: @ChrisWitrak
No positions in stocks mentioned.