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

By Christopher Witrak  AUG 29, 2013 12:16 PM

PPL Corporation, Best Buy, and Occidental Petroleum are on the list.

 


Many stocks will reach their ex-dividend date next Friday, 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 September 6 as their ex-dividend date. All annual yields are estimated.

PPL Corporation (NYSE:PPL) yields 4.77% annually and has a market cap $19.47 billion. The energy and utility holding company will pay a quarterly dividend of $0.3675 on October 1, and the quarterly yield will be 1.18% based on yesterday’s closing price of $31.04. The company has paid a quarterly dividend since the second half of 1987.

Best Buy (NYSE:BBY) yields 3.53% annually and has a market cap of $12.36 billion. The global consumer electronics stores will pay a quarterly dividend of $0.21 on September 25, and its quarterly yield will be 0.59% based on yesterday’s closing price of $35.81. The company has paid a quarterly dividend since the end of 2003.

Occidental Petroleum (NYSE:OXY) yields 2.88% annually and has market cap of $71.58 billion. The global exploration and production company for gas and oil will pay a quarterly dividend of $0.64 on October 15, and the quarterly yield will be 0.73% based on yesterday’s closing price of $88.17. The company has paid a quarterly dividend since the end of 1975.

CBS Corporation (NYSE:CBS) yields 0.92% annually and has a market cap of $31.55 billion. The global mass media company will pay a quarterly dividend of $0.12 on October 1, and the quarterly yield will be 0.23% based on yesterday’s closing price of $51.58. The company has paid a quarterly dividend since 2006.

FedEx Corporation (NYSE:FDX) yields 0.55% annually and has a market cap of $34.52 billion. The global provider of transportation, e-commerce, and business services will pay a quarterly dividend of $0.15 on October 1, and the quarterly yield of the dividend will be 0.14% based on yesterday’s closing price of $108.50. The company has paid a quarterly dividend since 2002, and each dividend payment has either increased or remained the same from the prior quarter.

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

H&R Block (NYSE:HRB) yields 2.82% annually and will pay a quarterly dividend of $0.20 on October 1.

Avnet (NYSE:AVT) yields 1.50% annually and will pay a quarterly dividend of $0.15 on September 20.

CNO Financial Group (NYSE:CNO) yields 0.86% annually and will pay a quarterly dividend of $0.03 on September 24.

Mentor Graphics (NASDAQ:MENT) yields 0.80% annually and will pay a quarterly dividend of $0.045 on September 30.

GAMCO Investors (NYSE:GBL) yields 0.41% annually and will pay a quarterly dividend of $0.06 on September 24.

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

Twitter: @ChrisWitrak
No positions in stocks mentioned.