Three Stocks Going Ex-Dividend in July

If you want to try the stock trading technique called 'Buying Dividends,' which is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend, there are many stocks to choose from. This technique generally works only in bull markets.

When you buy dividends, there are many stocks in many different sectors to choose from. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork has compiled a free downloadable and sortable Excel list of the stocks going ex dividend during the first part of July. They came up with over 20 companies all with market caps over $500 million. Here are a few examples showing the stock symbol, the ex-dividend date and the yield:

Toronto-Dominion Bank (TD) ex-div date 7/1/09 market cap $40.8B yield 4.3%

Mack-Cali Realty Corp. (CLI) ex-div date 7/1/09 market cap $1.7B yield 8.5%

Erie Indemnity Company (ERIE) ex-div date 7/1/09 market cap $1.8B yield 5.2%

The rest of the ex-dividend stocks can be found here. If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com. For more details on dividend definitions, check out definitions of dividend dates. Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author doesn't own any of the above.

Comments

[YoYoMama:]

"Buying dividends" seems like a non-starter. The stock typically rises right before the ex-date, and drops right after. You're buying high, and selling low. On top of that, you incur both the buy and sell fees from your brokerage house.

You might make a little money, but you're more likely to lose, especially in this volatile market environment.

A better strategy is select a stock based on fundamentals, chart strength and growth potential. You then buy low, regardless of dividend ex-date, and hang on until it makes fundamental sense to sell. For most investors, this is a more practical and successful approach.

Jun 27 08:33 AM

[Brad Castro:]

First, I agree with YoYoMama - long term, fundamental-based, value-oriented investing beats short term trading, in my book.

However . . . for the short term trader who's going to short term trade anyway, there may be better alternatives to capturing the dividend.

Check out this previous Seeking Alpha post by Devin Hobbes - seekingalpha.com/artic...

Jun 27 02:38 PM

[j baker:]

this CLI was trading around 26 bucks a share around june 6. might look into the stock itself, and if i like it, may buy some shares...

Jun 27 05:54 PM