X Factor: 5 Stocks Reaching Their Ex-Dividend Date on March 7

By Christopher Witrak  FEB 28, 2013 10:14 AM

Pepco Holdings, Expedia, and The Interpublic Group of Companies are on the list.

 


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 five stocks that schedule March 7 as their ex-dividend date. All annual yields are estimated.

Pepco Holdings (NYSE:POM) yields 5.32% annually and has a market cap of $4.66 billion. The distributor of electricity will pay a quarterly dividend of $0.27 on March 28, and its quarterly yield will be 1.33% based on yesterday’s closing price of $20.30. The company has paid a quarterly dividend since 1987.

Expedia (NASDAQ:EXPE) yields 0.81% annually and has a market cap of $8.69 billion. The global online travel company will pay a quarterly dividend of $0.13 on March 28, and its quarterly yield will be 0.20% based on yesterday’s closing price of $64.18. The company has paid a quarterly dividend since 2010.

The Interpublic Group of Companies (NYSE:IPG) yields 2.36% annually and has a market cap of $5.26 billion. The global provider of advertising and marketing services will pay a quarterly dividend of $0.075 on March 25. Its quarterly yield will be 0.59% based on yesterday’s closing price of $12.70. The company has paid a quarterly dividend since 1990.

Talisman Energy (NYSE:TLM) yields 2.10% annually and has a market cap of $12.69 billion. The upstream oil and gas company will pay a semi-annual dividend of $0.0675 on March 29, and its semi-annual yield will be 0.55% based on yesterday’s closing price of $12.38. The company has paid a semi-annual dividend since 2001.

CBS Corporation (NYSE:CBS) yields 1.10% annually and has a market cap of $27.56 billion. The global mass media company will pay a quarterly dividend of $0.12 on April 1, and the quarterly yield will be 0.27% based on yesterday’s closing price of $43.80. The company has paid a quarterly dividend since 2006.

These companies also have their ex-dividend date on March 7. All annual yields are estimated.

South Jersey Industries (NYSE:SJI) yields 3.25% annually and will pay a quarterly dividend of $0.4425 on April 4.

Principal Financial Group (NYSE:PFG) yields 2.91% annually and will pay a quarterly dividend of $0.23 on March 29.

J&J Snack Food Corporation (NASDAQ:JJSF) yields 0.93% annually and will pay a quarterly dividend of $0.16 on April 3.

Kansas City Southern (NYSE:KSU) yields 0.83% annually and will pay a quarterly dividend of $0.215 on April 3.

FedEx Corporation (NYSE:FDX) yields 0.53% annually and will pay a quarterly dividend of $0.14 on April 1.

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

Twitter: @ChrisWitrak
No positions in stocks mentioned.