X Factor: 5 Stocks Reaching Their Ex-Dividend Date on July 29

By Christopher Witrak  JUL 22, 2013 12:25 PM

Kinder Morgan, Texas Instruments, and ConAgra Foods are on the list.

 


Many stocks will reach their ex-dividend date next Monday, 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 July 29 as their ex-dividend date. All annual yields are estimated.

Kinder Morgan (NYSE:KMI) yields 4.04% annually and has a market cap of $41.04 billion. The operator of energy transportation and storage assets in the US and Canada will pay a quarterly dividend of $0.40 on August 15, and the quarterly yield of the dividend will be 1.01% based on Friday’s closing price of $39.55. The company has paid a quarterly dividend since 2011, and each payment has either increased or remained the same from the prior quarter.

Texas Instruments (NASDAQ:TXN) yields 2.99% annually and has a market cap of $41.60 billion. The global producer of semiconductors will pay a quarterly dividend of $0.28 on August 19, and its quarterly yield will be 0.75% based on Friday’s closing price of $37.26. The company has paid a quarterly dividend since 1982, and each dividend payment has either increased or remained the same from the prior quarter.

ConAgra Foods (NYSE:CAG) yields 2.71% annually and has a market cap of $15.42 billion. The food company operating in North America will pay a quarterly dividend of $0.25 on August 30, and the quarterly yield will be 0.68% based on Friday’s closing price of $37.02. The company has paid a quarterly dividend since the second half of 1985.

The ADT Corporation (NYSE:ADT) yields 1.19% annually and has a market cap of $9.21 billion. The provider of electronic security and monitoring services in the US and Canada will pay a quarterly dividend of $0.125 on August 21, and the quarterly yield will be 0.30% based on Friday’s closing price of $42.17. The company has paid a quarterly dividend since last year.

Morgan Stanley (NYSE:MS) yields 0.72% annually and has a market cap of $54.47 billion. The financial holding company will pay a quarterly dividend of $0.05 on August 15, and the quarterly yield will be 0.18% based on Friday’s closing price of $27.60. The company has paid a quarterly dividend since 1993.

These companies also have their ex-dividend date on July 29. All annual yields are estimated.

Omega Healthcare Investors (NYSE:OHI) yields 5.49% quarterly and will pay a quarterly dividend of $0.47 on August 15.

National Retail Properties (NYSE:NNN) yields 4.32% annually and will pay a quarterly dividend of $0.405 on August 15.

Education Realty Trust (NYSE:EDR) yields 4.19% annually and will pay a quarterly dividend of $0.11 on August 15.

Western Refining (NYSE:WNR) yields 2.61% annually and will pay a quarterly dividend of $0.18 on August 15.

AO Smith Corporation (NYSE:AOS) yields 1.20% annually and will pay a quarterly dividend of $0.12 on August 15.

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

Twitter: @ChrisWitrak
No positions in stocks mentioned.