X Factor: 5 Stocks Reaching Their Ex-Dividend Date on February 13

By Christopher Witrak  FEB 06, 2013 10:15 AM

ARMOUR Residential REIT, Eli Lilly, and Walgreen 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 February 13 as their ex-dividend date. All annual yields are estimated.

ARMOUR Residential REIT (NYSE:ARR) yields 13.41% annually and has a market cap of $2.21 billion. The real estate investment trust, or REIT, will pay a monthly dividend of $0.08 on March 27, and its monthly yield will be 1.11% based on yesterday’s closing price of $7.16. The company has paid a dividend since 2010 and a monthly dividend since 2011.

Eli Lilly (NYSE:LLY) yields 3.62% annually and has a market cap of $60.26 billion. The global producer of pharmaceutical products will pay a quarterly dividend of $0.49 on March 8. Its quarterly yield will be 0.91% based on yesterday’s closing price of $54.10. The company has paid a quarterly dividend since 1972, and each dividend payment has either increased or remained the same from the prior quarter.

Walgreen (NYSE:WAG) yields 2.66% annually and has a market cap of $39.06 billion. The operator of drug stores in the United States will pay a quarterly dividend of $0.275 on March 12, and the quarterly yield will be 0.67% based on yesterday’s closing price of $41.33. The company has paid a quarterly dividend since 1972, and each dividend payment has either increased or remained the same from the prior quarter.

Boeing (NYSE:BA) yields 2.56% annually and has a market cap of $57.34 billion. The producer of aircraft will pay a quarterly dividend of $0.485 on March 8, and its quarterly yield will be 0.64% based on yesterday’s closing price of $75.89. The company first paid a dividend in 1937 and resumed paying a dividend in 1942.

Broadcom Corporation (NASDAQ:BRCM) yields 1.36% annually and has a market cap of $18.32 billion. The developer of semiconductor solutions for wired and wireless communications will pay a quarterly dividend of $0.11 on March 4, and its quarterly yield will be 0.33% based on yesterday’s closing price of $32.61. The company has paid a quarterly dividend since 2010.

These companies also have their ex-dividend date on February 13. All annual yields are estimated.

Applied Industrial Technologies (NYSE:AIT) yields 2.07% annually and will pay a quarterly dividend of $0.23 on February 28.

TCF Financial Corporation (NYSE:TCB) yields 1.45% annually and will pay a quarterly dividend of $0.05 on February 28.

Buckeye Technologies (NYSE:BKI) yields 1.27% annually and will pay a quarterly dividend of $0.09 on March 15.

Maximus (NYSE:MMS) yields 0.53% annually and will pay a quarterly dividend of $0.09 on February 28.

Global Payments (NYSE:GPN) yields 0.16% annually and will pay a quarterly dividend of $0.02 on February 28.

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

Twitter: @ChrisWitrak
No positions in stocks mentioned.