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 May 22 as their ex-dividend date. All annual yields are estimated.
Cablevision Systems Corporation (CVC) yields 3.85% annually and has a market cap of $4.18 billion. The provider of telecommunications and media services will pay a quarterly dividend of $0.15 on June 14, and the quarterly yield of the dividend will be 0.96% based on yesterday's closing price of $15.58. The company first paid a dividend in 2001 and began paying a quarterly dividend in 2008.
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HSBC Holdings (HBC) yields 3.48% annually and has a market cap of $214.69 billion. The provider of banking services and financial products and services will pay a quarterly dividend of $0.50 on July 11, and its quarterly yield will be 0.88% based on yesterday's closing price of $57.06. The company has paid a dividend since 1999 and a quarterly dividend since 2003.
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Carnival Corporation (CCL) yields 2.85% annually and has a market cap of $27.22 billion. The global cruise and vacation company will pay a quarterly dividend of $0.25 on June 11, and the quarterly yield will be 0.71% based on yesterday's closing price of $35.20. The company has paid a quarterly dividend since 1989, and each dividend payment has either increased or remained the same from the prior quarter.
Robert Half International (RHI) yields 1.84% annually and has a market cap of $4.78 billion. The provider of staffing and risk consulting services will pay a quarterly dividend of $0.16 on June 14, and the quarterly yield will be 0.46% based on yesterday's closing price of $34.76. The company has paid a quarterly dividend since 2004, and each dividend payment has either increased or remained the same from the prior quarter.