X Factor: 5 Stocks Reaching Their Ex-Dividend Date on March 6

By Christopher Witrak  FEB 27, 2013 9:55 AM

Frontier Communications, Williams Companies, and Occidental Petroleum 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 March 6 as their ex-dividend date. All annual yields are estimated.

Frontier Communications (NASDAQ:FTR) yields 9.83% annually and has a market cap of $4.06 billion. The global provider of advertising and marketing services will pay a quarterly dividend of $0.10 on March 29, and the quarterly yield will be 2.46% based on yesterday’s closing price of $4.07. The company has consistently paid a quarterly dividend since the second half of 2004.

Williams Companies (NYSE:WMB) yields 4.02% annually and has a market cap of $23.02 billion. The energy infrastructure company in the US will pay a quarterly dividend of $0.3387 on March 25, and its quarterly yield will be 1% based on yesterday’s closing price of $33.79. The company has paid a quarterly dividend since 1997.

Occidental Petroleum Corporation (NYSE:OXY) yields 3.13% annually and has a market cap of $65.87 billion. The global oil and gas exploration and production company will pay a quarterly dividend of $0.64 on April 15, and its quarterly yield will be 0.78% based on yesterday’s closing price of $81.78. The company has paid a quarterly dividend since 1982.

Coach (NYSE:COH) yields 2.58% annually and has a market cap of $13.06 billion. The designer and seller of handbags and other accessories will pay a quarterly dividend of $0.30 on April 1. Its quarterly yield will be 0.65% based on yesterday’s closing price of $46.50. The company has paid a quarterly dividend since 2009.

Qualcomm (NASDAQ:QCOM) yields 1.53% annually and has a market cap of $112.14 billion. The developer of digital telecommunications products and services will pay a quarterly dividend of $0.25 on March 27, and its quarterly yield will be 0.38% based on yesterday’s closing price of $65.27. The company has paid a quarterly dividend since 2003.

These companies also have their ex-dividend date on March 6. All annual yields are estimated.

Reynolds American (NYSE:RAI) yields 5.37% annually and will pay a quarterly dividend of $0.59 on April 1.

Kimberly-Clark (NYSE:KMB) yields 3.44% annually and will pay a quarterly dividend of $0.81 on April 2.

Johnson Controls (NYSE:JCI) yields 2.47% annually and will pay a quarterly dividend of $0.19 on April 2.

Coca-Cola Enterprises (NYSE:CCE) yields 2.29% annually and will pay a quarterly dividend of $0.20 on March 21.

Dick’s Sporting Goods (NYSE:DKS) yields 1.02% annually and will pay an annual dividend of $0.125 on March 29.

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

Twitter: @ChrisWitrak
The author has a position in Occidental Petroleum Corporation.