X Factor: 5 Stocks Reaching Their Ex-Dividend Date on May 21

By Christopher Witrak  MAY 14, 2013 10:00 AM

CA Technologies, Mattel, and Applied Materials 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 May 21 as their ex-dividend date. All annual yields are estimated.

CA Technologies (NASDAQ:CA) yields 3.71% annually and has a market cap of $12.09 billion. The provider of of enterprise information technology management software and solutions will pay a quarterly dividend of $0.25 on June 11, and the quarterly yield will be 0.93% based on yesterday’s closing price of $26.98. The company has paid a dividend since 1990 and a quarterly dividend since 2005.

Mattel (NASDAQ:MAT) yields 3.12% annually and has a market cap of $15.95 billion. The producer of toy products will pay a quarterly dividend of $0.36 on June 14, and the quarterly yield of the dividend will be 0.78% based on yesterday’s closing price of $46.17. The company first paid a quarterly dividend in 1982 and 1983 and resumed paying a quarterly dividend in 1990.

Applied Materials (NASDAQ:AMAT) yields 2.72% annually and has a market cap of $17.63 billion. The global provider of manufacturing, equipment, and services to electronics industries will pay a quarterly dividend of $0.10 on June 13, and its quarterly yield will be 0.68% based on yesterday’s closing price of $14.69. The company has paid a quarterly dividend since 2005.

Silver Wheaton Corporation (NYSE:SLW) yields 1.83% annually and has a market cap of $8.31 billion. The global gold and silver streaming company will pay a quarterly dividend of $0.12 on May 31, and the quarterly yield will be 0.51% based on yesterday’s closing price of $23.46. The company has paid a quarterly dividend since 2011.

Zions Bancorp (NYSE:ZION) yields 0.60% annually and has a market cap of $4.88 billion. The financial holding company will pay a quarterly dividend of $0.04 on May 30, and the quarterly yield will be 0.15% based on yesterday’s closing price of $26.46. The company has paid a dividend since 1990 and a quarterly dividend since 1992.

These companies also have their ex-dividend date on May 21. All annual yields are estimated.

Avista Corporation (NYSE:AVA) yields 4.27% annually and will pay a quarterly dividend of $0.31, on June 12.

LTC Properties (NYSE:LTC) yields 3.81% annually and will pay a monthly dividend of $0.155 on May 31.

Thomson Reuters (NYSE:TRI) yields 3.77% annually and will pay a quarterly dividend of $0.325 on June 17.

China Unicom (NYSE:CHU) yields 1.17% annually and will pay an annual dividend of $0.1739 on June 24.

Forward Air Corporation  (NASDAQ:FWRD) yields 1.07% annually and will pay a quarterly dividend of $0.10 on June 6.

Purchase -- and have your broker settle -- before the ex-dividend date to secure the dividend.
 
Twitter: @ChrisWitrak
No positions in stocks mentioned.