Nine 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 February 28 as their ex-dividend date. All annual yields are estimated.
Arthur J. Gallagher (AJG) yields 3.62% annually and has a market cap of $4.87 billion. The provider of insurance brokerage and risk management services will pay a quarterly dividend of $0.35 on March 20. Its quarterly yield will be 0.91% based on yesterday's closing price of $38.66. The company has paid a quarterly dividend since the end of 1988, and each dividend payment has either increased or remained the same from the prior quarter.
Cinemark Holdings (CNK) yields 2.92% annually and has a market cap of $3.26 billion. The operator of theatres will pay a quarterly dividend of $0.21 on March 15, and its quarterly yield will be 0.72% based on yesterday's closing price of $28.80. The company has paid a quarterly dividend since the second half of 2007, and each dividend payment has either increased or remained the same from the prior quarter.
Suncor Energy (SU) yields 1.66% annually and has a market cap of $47.79 billion. The integrated gas company will pay a quarterly dividend of $0.13 on March 25, and its quarterly yield will be 0.41% based on yesterday's closing price of $31.38. The company has paid a quarterly dividend since 1994.
Nike (NKE) yields 1.55% annually and has a market cap of $48.39 billion. The global apparel and footwear company will pay a quarterly dividend of $0.21 on April 1, and the quarterly yield will be 0.39% based on yesterday's closing price of $54.02. The company has paid a quarterly dividend since the end of 1984, and each dividend payment has either increased or remained the same from the prior quarter.
Fluor Corporation (FLR) yields 0.99% annually and has a market cap of $10.71 billion. The global provider of engineering, construction, and maintenance services will pay a quarterly dividend of $0.16 on April 2, and its quarterly yield will be 0.25% based on yesterday's closing price of $64.34. The company has paid a quarterly dividend since 2001, and each dividend has either increased or remained the same from the prior quarter.
These companies also have their ex-dividend date on February 28. All annual yields are estimated.
AMCOL International (ACO) yields 2.67% annually and will pay a quarterly dividend of $0.20 on April 9.
Atmos Energy (ATO) yields 3.70% annually and will pay a quarterly dividend of $0.35 on March 18.
Heartland Payment Systems (HPY) yields 0.85% annually and will pay a quarterly dividend of $0.07 on March 15.
Imperial Oil (IMO) yields 1.14% annually and will pay a quarterly dividend of $0.12 on April 1.
Twitter: @ChrisWitrak