X Factor: 5 Stocks Reaching Their Ex-Dividend Date on September 26

By Christopher Witrak  SEP 19, 2013 12:50 PM

Windstream Holdings, Cole Real Estate Investments, and Xerox Corporation 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 September 26 as their ex-dividend date. All annual yields are estimated.

Windstream Holdings (NASDAQ:WIN) yields 11.67% annually and has a market cap of $5.06 billion. The provider of communications and technology solutions in the United States will pay a quarterly dividend of $0.25 on October 15, and its quarterly yield will be 2.92% based on yesterday’s closing price of $8.57. The company has paid a quarterly dividend since 2005.  

Cole Real Estate Investments (NYSE:COLE) yields 6.39% annually and has a market cap of $5.97 billion. The real estate investment trust will pay a monthly dividend of $0.06 on October 1, and the quarterly yield will be 0.70% based on yesterday’s closing price of $12.10. The REIT began paying a dividend this year.

Xerox Corporation (NYSE:XRX) yields 2.22% annually and has a market cap of $12.70 billion. The global provider of business process and document management will pay a quarterly dividend of $0.0575 on October 31, and the quarterly yield of the dividend will be 0.55% based on yesterday’s closing price of $10.36. The company has paid a quarterly dividend since 1973.

Yamana Gold (NYSE:AUY) yields 1.89% annually and has a market cap of $8.58 billion. The gold miner will pay a quarterly dividend of $0.065 on October 11, and the quarterly yield will be 0.56% based on yesterday’s closing price of $11.61. The company has paid a quarterly dividend since the second half of 2006.

Mondelez International (NASDAQ:MDLZ) yields 1.71% annually and has a market cap of $58.53 billion. The global producer of snack food and beverages will pay a quarterly dividend of $0.14 on October 15, and the quarterly yield will be 0.43% based on yesterday’s closing price of $32.73. The company has paid a quarterly dividend since the end of 2001.

These companies also have their ex-dividend date on September 26. All annual yields are estimated.

Prospect Capital Corporation (NASDAQ:PSEC) yields 11.37% annually and will pay a monthly dividend of $0.1102 on October 24.

The Dow Chemical Company (NYSE:DOW) yields 3.13% annually and will pay a quarterly dividend of $0.32 on October 30.

Cameco Corporation (NYSE:CCJ) yields 2.03% annually and will pay a quarterly dividend of $0.10 on October 15.

Agrium (NYSE:AGU) yields 1.00% annually and will pay a semi-annual dividend of $0.50 on October 17.

Mercadolibre (NASDAQ:MELI) yields 0.44% annually and will pay a quarterly dividend of $0.143 on October 15.

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