X Factor: 5 Stocks Reaching Their Ex-Dividend Date on January 30

By Christopher Witrak  JAN 24, 2013 10:30 AM

People's United Financial, Pfizer, and The AES Corporation are on the list.

 


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 January 30 as their ex-dividend date. All annual yields are estimated.

People’s United Financial (NASDAQ:PBCT) yields 5.12 % annually and has a market cap of $4.24 billion. The bank holding company for People’s United Bank will pay a quarterly dividend of $0.16 on February 15, and its quarterly yield will be 1.28% based on yesterday’s closing price of $12.49. The company first paid a quarterly dividend from the end of 1988 through 1990 and resumed paying a quarterly dividend at the end of 1993. Since then, each dividend payment has either increased or remained the same from the prior quarter.

Pfizer (NYSE:PFE) yields 3.60% annually and has a market cap of $196.21 billion. The biopharmaceutical company will pay a quarterly dividend of $0.24 on March 5. The quarterly yield will be 0.90% based on yesterday’s closing price of $26.65. The company has paid a quarterly dividend since the middle of 1980.

The AES Corporation (NYSE:AES) yields 1.43% annually and has a market cap of $8.34 billion. AES owns a portfolio of electricity generation and distribution businesses. It will pay a quarterly dividend of $0.04 on February 15, and its monthly yield will be 0.36% based on yesterday’s closing price of $11.21. The company first paid a dividend from 1992 to the beginning of 1994 and began paying a quarterly dividend again last year.

Fastenal Company (NASDAQ:FAST) yields 0.84% annually and has a market cap of $14.12 billion. Fastenal is a wholesaler and retailer of industrial and construction supplies internationally.  It will pay a semi-annual dividend of $0.10 on March 1, and its quarterly yield will be 0.21% based on yesterday’s closing price of $47.62. The company has paid a dividend since 1990, and it began paying a quarterly dividend in 2011.

Lennar Corporation (NYSE:LEN) yields 0.37% annually and has a market cap of $8.20 billion. The homebuilding and real estate company will pay a quarterly dividend of $0.04 on February 15. Its quarterly yield will be 0.09% based on yesterday’s closing price of $42.61. The company has paid a quarterly dividend since 1988.

These companies also have their ex-dividend date on January 30. All annual yields are estimated.

Omega Healthcare Investors (NYSE:OHI) yields 6.96% annually and will pay a quarterly dividend of $0.45 on February 15.

Teekay LNG Partners (NYSE:TGP) yields 6.59% annually and will pay a quarterly dividend of $0.675 on February 14.

Genesis Energy (NYSE:GEL) yields 5.01% annually and will pay a quarterly dividend of $0.485 on February 14.

Bank of Montreal (NYSE:BMO) yields 4.48% annually and will pay a quarterly dividend of $0.72 on February 26.

Pinnacle West Capital Corporation (NYSE:PNW) yields 4.12% annually and will pay a quarterly dividend of $0.545 on March 1.

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

Twitter: @ChrisWitrak
No positions in stocks mentioned.