X Factor: 5 High-Yield Stocks Reaching Their Ex-Dividend Date on September 6
By Christopher Witrak Sep 05, 2012 11:10 am
PPL Corporation, Reynolds American, and Pepco Holdings are on the list.
Pepco Holdings (POM) yields 5.56% annually. The mid-Atlantic-based energy delivery company has a market cap of $4.45 billion and will pay a quarterly dividend of $0.27 on September 28. Its monthly yield will be 1.39% based on last Friday’s closing price of $19.40. The company has paid a quarterly dividend since 1987.
Pepco's second quarter results fell below estimates. Net income decreased 34% from $94 million, or $0.42 per share, in the prior-year quarter to $62 million, or $0.27 per share, in the recent quarter. The company reported an adjusted net income for the second quarter of $0.25 per share. The average estimate for net income was $0.35 per share. Revenue fell 16.3% from the prior-year quarter to $1.18 billion. The average estimate for revenue estimates was $1.87 billion.
The average net income projection for Pepco’s third quarter has fallen from $0.44 to $0.39, and the average net income projection for the entire year has fallen from $1.25 to $1.23.
Reynolds American (RAI) yields 5.08% annually and has a market cap of $26.27 billion. The second largest tobacco company in the United States will pay a quarterly dividend of $0.59 on October 1. Its quarterly yield will be 1.31% based on last Friday’s closing price of $46.46. The company has been paying a quarterly dividend since the middle of 1999, and the dividend has never declined since the beginning of the payouts.
Reynolds had a mixed second quarter this year. Net income increased 35.5% from $327 million, or $0.56 per share, in the prior-year quarter to $443 million, or $0.78 per share. The company reported an adjusted net income of $0.79. The average net income estimate for the quarter was $0.76 per share. Revenue decreased 4% from the prior-year quarter to $2.18 billion. The average revenue estimate was $2.25 billion.
Reynolds has missed revenue expectations for two consecutive quarters. Yet average net income projections for the third quarter have increased $0.01 to $0.80. Average net income projections for the year have also risen by $0.01 to $2.95 per share.
No positions in stocks mentioned.