Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

X Factor: 5 High-Yield Stocks Reaching Their Ex-Dividend Date on August 30

By

Lockheed Martin, Vanguard Natural Resources, and Old Republic International Corp. are on the list.

PrintPRINT
MINYANVILLE ORIGINAL Many stocks will reach their ex-dividend date tomorrow, which is significant for investors since 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. Dividends are paid on the dividend record date, usually two business days after the ex-dividend date.

Purchasers must own a stock several days prior to the dividend record date to get the dividend. Those purchasing right before the 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 effect since it can still take up to three business days for transactions to be credited to and settled in an investor's account. (See also: 10 Undervalued Dividend-Paying Stocks With Momentum.)

Below are high-yield stocks that schedule August 30 as their ex-dividend date. All annual yields are estimated.

Vanguard Natural Resources (VNR) yields 8.28% annually and has a market cap of $1.50 billion. The oil and natural gas company pays a monthly dividend of $0.20 on September 14. This dividend results in monthly yield of 0.69% based on yesterday's closing price of $28.84. The company has paid a dividend since 2008. This month, Vanguard decided to switch to a monthly dividend.

For its second quarter, the company beat revenue estimates, but fell short of earnings estimates. Vanguard reported a net income of $103.4 million, or $1.99 per share, compared to $31.8 million, or $1.05 per share, in the prior-year quarter. Revenue also increased from $112.51 million in the prior-year quarter to $151.92 million in the second quarter of 2012.

Old Republic International Corp. (ORI) yields 8.03% annually and has a market cap of $2.25 billion.The insurance company will pay a quarterly dividend of $0.1775 on September 14. Its quarterly yield will be 2.00% based on yesterday's closing price of $8.84. The company has paid a steadily increasing dividend since 1990.

The company's mortgage insurance units and credit indemnity group have struggled and hurt the company, reporting a loss of $95.5 million in the second quarter of this year. Old Republic reported a net loss of $34 million for the second quarter compared to a net loss of $66.3 million for the prior-year quarter. The company failed to spin off the mortgage units and credit indemnity group, which were combined and renamed the Republic Financial Indemnity Group. However, Old Republic will not allocate any new resources to the group.

TAL International Group (TAL) yields 7.01% annually and has a market cap of $1.15 billion. The container leasing company will pay a quarterly dividend of $0.60 on September 15. Its quarterly yield will be 1.75% based on yesterday's closing price of $34.25. The company has paid a quarterly dividend since the middle of 2006, and the dividend has consistently increased since 2010.

The company performed better on a year-to-year basis for its recent quarter with a second-quarter net income of $29.3 million, or $0.87 per share, compared to $23.2 million, or $0.70 per share, in the prior-year quarter. Revenue also increased from $120.22 million in the prior-year quarter to $150.02 million for the second quarter of 2012. TAL anticipates a slightly higher or steady income for the third quarter of 2012 relative to the second quarter.

Realty Income Corp. (O) yields 4.29% annually and has a market cap of $5.73 billion. The real estate company will pay a monthly dividend of $0.1511 on September 17. Its monthly yield will be 0.36% based on yesterday's closing price of $42.31. The company has been paying monthly dividends since 1969 and has increased its dividend 67 times since 1994.

For its second quarter, revenue increased 13.8% from the prior-year quarter to $115.6 million. Net income for the second quarter of 2012 dropped from $33.2 million in the prior-year quarter to $33 million.

Lockheed Martin (LMT) yields 4.33% annually. The global security and aerospace company has a market cap of $29.80 billion and will pay a monthly dividend of $1.00 on September 28. Its monthly yield will be 1.08% based on yesterday's closing price of $92.48. The company has paid a consistently increasing dividend since 1984.

Lockheed Martin has done well and raised its full-year forecast for 2012 after reporting its second-quarter results in July. The company earned $781 million, or $2.38 per share, in its second quarter this year compared to earnings of $748 million, or $2.16 per share, in the prior-year quarter. Net sales also increased year-over-year from $11.5 billion in the prior-year quarter to $11.9 billion. The company raised its projected earnings for 2012 from between $7.70 and $7.90 per share to between $7.90 and $8.10 per share. Analysts anticipate full-year earnings per share of $7.89.

These companies also have their ex-dividend date on August 30. All yields are estimated annualized yields.

Six Flags Entertainment (SIX) yields 4.35% annually and will pay a quarterly dividend of $0.60 on September 17.

Kellogg (K) yields 3.41% annually and will pay a quarterly dividend of $0.44 on September 17.

McDonald's (MCD) yields 3.13% annually and will pay a quarterly dividend $0.70 on September 18.

Nike (NKE) yields 1.49% annually and will pay a $0.36 dividend on October 1.

The Wendy's Company (WEN) yields 1.83% annually and will pay a $0.02 dividend on September 18.

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

(See also: 11 High-Quality Dividend-Paying Stocks to Consider Ahead of First Quarter)

Twitter: @ChrisWitrak
No positions in stocks mentioned.
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE