X Factor: 5 Stocks Reaching Their Ex-Dividend Date on August 8

By Christopher Witrak  AUG 01, 2013 2:30 PM

Apple, Rockwell Automation, and Penske Automotive Group 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 August 8 as their ex-dividend date. All annual yields are estimated.

Apple (NASDAQ:AAPL) yields 2.68% annually and has a market cap of $413.50 billion. The global consumer electronics company will pay a quarterly dividend of $3.05 on August 15, and its quarterly yield will be 0.67% based on yesterday’s closing price of $452.53. The company first paid a quarterly dividend from 1987 through 1995 and resumed paying a quarterly dividend last year.

Rockwell Automation (NYSE:ROK) yields 2.09% annually and has a market cap of $13.89 billion. The provider of industrial automation solutions will pay a quarterly dividend of $0.52 on September 10, and the quarterly yield will be 0.54% based on yesterday’s closing price of $96.85. The company has paid a quarterly dividend since 1982.

Penske Automotive Group (NYSE:PAG) yields 1.68% annually and has a market cap of $3.45 billion. The automotive retailer will pay a quarterly dividend of $0.16 on September 3, and the quarterly yield will be 0.43% based on yesterday’s closing price of $37.18. The company has paid a quarterly dividend since the end of 2003.

Altera Corporation (NASDAQ:ALT) yields 1.66% annually and has a market cap of $11.58 billion. The producer of programmable logic devices will pay a quarterly dividend of $0.15 on September 3, and the quarterly yield will be 0.42% based on yesterday’s closing price of $35.56. The company has paid a quarterly dividend since 2007, and each dividend payment has either increased or remained the same from the prior quarter.

PPG Industries (NYSE:PPG) yields 1.50% annually and has a market cap of $23.22 billion. The coatings and specialty products company will pay a quarterly dividend of $0.61 on September 12, and the quarterly yield will be 0.38% based on yesterday’s closing price of $160.44. The company has paid a quarterly dividend since 1983, and each dividend payment has either increased or remained the same from the prior quarter.

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

Twitter: @ChrisWitrak
No positions in stocks mentioned.