Many stocks will reach their ex-dividend date next Thursday, 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 four stocks that schedule January 31 as their ex-dividend date. All annual yields are estimated.
Calumet Specialty Products Partners
(NASDAQ:CLMT) yields 7.94% annually and has a market cap of $1.88 billion. The producer and seller of specialty hydrocarbon products
will pay a quarterly dividend of $0.65 on February 14. The quarterly yield will be 1.98% based on yesterday’s closing price of $32.75. The company has paid a quarterly dividend since 2006.
(NYSE:SO) yields 4.43% annually and has a market cap of $38.64 billion. The electric utility company
will pay a quarterly dividend of $0.49 on March 6, and its quarterly yield will be 1.11% based on yesterday’s closing price of $44.21. The company has paid a quarterly dividend since 1972, and each dividend payment has either increased or remained the same from the prior quarter.
Federated National Holding Company
(NASDAQ:FNHC) yields 1.45% annually and has a market cap of $43.83 million. Federated National Holding Company is an insurance underwriter and claims processor
in the US. It will pay a quarterly dividend of $0.02 on March 4, and its quarterly yield will be 0.36% based on yesterday’s closing price of $5.51. The company first paid a quarterly dividend from the end of 2000 through the first half of 2010 and resumed paying a quarterly dividend last year.
(NYSE:C) yields 0.09% annually and has a market cap of $125.95 billion. The financial services company
will pay a quarterly dividend of $0.01 on February 22, and its quarterly yield will be 0.02% based on yesterday’s closing price of $42.80. The company first paid a quarterly dividend from the end of 1986 through the beginning of 2009 and resumed paying a dividend in 2011.
No positions in stocks mentioned.