X Factor: 5 Stocks Reaching Their Ex-Dividend Date on February 26

By Christopher Witrak  FEB 19, 2013 10:35 AM

Corning, Barrick Gold Corporation, and CSX Corporation are on the list.

 


Many stocks will reach their ex-dividend date next Tuesday, 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 26 as their ex-dividend date. All annual yields are estimated.

Corning (NYSE:GLW) yields 2.81% annually and has a market cap of $18.83 billion. The global producer of specialty glasses and ceramics will pay a quarterly dividend of $0.09 on March 28, and its quarterly yield will be 0.70% based on Friday’s closing price of $12.79. The company first paid a quarterly dividend from 1982 through the first half of 2001 and resumed paying a quarterly dividend in 2007.

Barrick Gold Corporation (NYSE:ABX) yields 2.53% annually and has a market cap of $31.67 billion. The miner of gold and copper will pay a quarterly dividend of $0.20 on March 15, and its quarterly yield will be 0.63% based on Friday’s closing price of $31.63. The company has paid a dividend since 1987, and a quarterly dividend since 2010.

CSX Corporation (NYSE:CSX) yields 2.46% annually and has a market cap of $23.43 billion. The provider of rail-based transportation services will pay a quarterly dividend of $0.14 on March 15. Its quarterly yield will be 0.61% based on Friday’s closing price of $22.79. The company has paid a quarterly dividend since 1990.

NVIDIA Corporation (NASDAQ:NVDA) yields 2.36% annually and has a market cap of $7.90 billion. The provider of graphic chips for smartphones and personal computers will pay a quarterly dividend of $0.075 on March 21, and its quarterly yield will be 0.59% based on Friday’s closing price of $12.73. The company began paying a dividend last year

Goldman Sachs (NYSE:GS) yields 1.29% annually and has a market cap of $75.34 billion. The provider of investment banking and investment management services will pay a quarterly dividend of $0.50 on March 28, and the quarterly yield will be 0.32% based on Friday’s Friday’s price of $154.99. The company has paid a quarterly dividend since the second half of 1999, and each dividend payment has either increased or remained the same from the prior quarter.

These companies also have their ex-dividend date on February 26. All annual yields are estimated.

Dominion Resources (NYSE:D) yields 4.10% annually and will pay a quarterly dividend of $0.5625 on March 20.

The Allstate Corporation (NYSE:ALL) yields 2.18% annually and will pay a quarterly dividend of $0.25 on April 1.

Union Pacific (NYSE:UNP) yields 2.02% annually and will pay a quarterly dividend of $0.69 on April 1.

Estee Lauder Companies (NYSE:EL) yields 1.14% annually and will pay a quarterly dividend of $0.18 on March 15.

Allergan (NYSE:AGN) yields 0.19% annually and will pay a quarterly dividend of $0.05 on March 21.

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

Twitter: @ChrisWitrak
No positions in stocks mentioned.