X Factor: 5 Stocks Reaching Their Ex-Dividend Date on September 11

By Christopher Witrak  SEP 04, 2013 11:00 AM

Encana Corporation, Williams Companies, and Macy's 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 September 11 as their ex-dividend date. All annual yields are estimated.

Encana Corporation (NYSE:ECA) yields 4.65% annually and has a market cap of $12.71 billion. The development and production company for natural gas, natural gas liquids, and oil will pay a quarterly dividend of $0.20 on September 30, and the quarterly yield will be 1.17% based on yesterday’s closing price of $17.08. The company has paid a quarterly dividend since 2002.

Williams Companies (NYSE:WMB) yields 4.12% annually and has a market cap of $24.35 billion. The energy infrastructure company will pay a quarterly dividend of $0.3662 on September 30, and the quarterly yield will be 1.02% based on yesterday’s closing price of $35.93. The company has paid a quarterly dividend since 1982.

Macy’s (NYSE:M) yields 2.25% annually and has a market cap of $16.79 billion. The operator of stores in the US will pay a quarterly dividend of $0.25 on October 1, and the quarterly yield will be 0.56% based on yesterday’s closing price of $44.28. The company has paid a quarterly dividend since 2003.

UnitedHealth Group (NYSE:UNH) yields 1.54% annually and has a market cap of $74.0 billion. The diversified health and wellbeing company in the US will pay a quarterly dividend of $0.28 on September 24, and its quarterly yield will be 0.39% based on yesterday’s closing price of $72.56. The company has paid a dividend since 1990 and a quarterly dividend since 2010.

Regions Financial Corporation (NYSE:RF) yields 1.27% annually and has a market cap of $13.28 billion. The provider of banking services in the US will pay a quarterly dividend of $0.03 on October 1, and the quarterly yield will be 0.13% based on yesterday’s closing price of $22.34. The company has paid a quarterly dividend since the second half of 1990.

These companies also have their ex-dividend date on September 11. All annual yields are estimated.

Leggett & Platt (NYSE:LEG) yields 4.14% annually and will pay a quarterly dividend of $0.30 on October 15.

American Assets Trust (NYSE:AAT) yields 2.89% annually and will pay a quarterly dividend of $0.21 on September 27.

Eastman Chemical Company (NYSE:EMN) yields 1.57% annually and will pay a quarterly dividend of $0.30 on October 1.

Domino’s Pizza (NYSE:DPZ) yields 1.30% annually and will pay a quarterly dividend of $0.20 on September 30.

Textron (NYSE:TXT) yields 0.29% annually and will pay a quarterly dividend of $0.02 on October 1.

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

Twitter: @ChrisWitrak
No positions in stocks mentioned.