X Factor: 5 Stocks Reaching Their Ex-Dividend Date on February 4

By Christopher Witrak  JAN 29, 2013 9:50 AM

MarkWest Energy Partners, Xilinx, and MetLife are on the list.

 


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 three stocks that schedule February 4 as their ex-dividend date. All annual yields are estimated.

MarkWest Energy Partners (NYSE:MWE) yields 6.11% annually and has a market cap of $6.32 billion. The financial services company will pay a quarterly dividend of $0.82 on February 14, and its quarterly yield will be 1.53% based on yesterday’s closing price of $53.72. The company has paid a quarterly dividend since the end of 2002, and each dividend payment has either increased or remained the same from the prior quarter.

Xilinx (NASDAQ:XLNX) yields 2.40% annually and has a market cap of $9.57 billion. The global developer of programmable platforms will pay a quarterly dividend of $0.22 on February 27. Its quarterly yield will be 0.60% based on yesterday’s closing price of $36.72. The company has paid a quarterly dividend since 2004, and each dividend payment has either increased or remained the same.

MetLife (NYSE:MET) yields 1.97% annually and has a market cap of $41.06 billion. The insurance and employee benefit provider will pay a quarterly dividend of $0.185 on March 13, and its quarterly yield will be 0.49% based on yesterday’s closing price of $37.63. The company first paid an annual dividend from 2000 through 2012, and it began paying a quarterly dividend this year.

Beam (NYSE:BEAM) yields 1.43% annually and has a market cap of $10.02 billion. The global producer and seller of alcohol will pay a quarterly dividend of $0.225 on March 1, and its quarterly yield will be 0.36% based on yesterday’s closing price of $62.97. The company has paid a quarterly dividend since 1977.

Banco Bradesco S.A. (NYSE:BBD) yields 0.57% annually and has a market cap of $69.82 billion. The financial products and services company will pay an extra dividend of $0.0086 on March 11, and the yield of this special dividend will be 0.047% based on yesterday’s closing price of $18.29. The company has paid a monthly dividend since 2003.

These companies also have their ex-dividend date on February 4. All annual yields are estimated.

Magellan Midstream Partners (NYSE:MMP) yields 4.10% annually and will pay a quarterly dividend of $0.50 on February 14.

Delek Logistics Partners (NYSE:DKL) yields 3.50% annually and will pay a quarterly dividend of $0.224 on February 14.

IdaCorp (NYSE:IDA) yields 3.32% annually and will pay a quarterly dividend of $0.38 on February 28.

Atlas Energy (NYSE:ATLS) yields 3.24% annually and will pay a quarterly dividend of $0.30 on February 19.

Cash America (NYSE:CSH) yields 0.29% annually and will pay a quarterly dividend of $0.035 on February 20.

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

Twitter: @ChrisWitrak
No positions in stocks mentioned.