Each month we identify stocks that will have an ex-dividend date in the next 30 days and give them a rating based on our DSO rating system. The ex-dividend date is the day a stock trades without its dividend. To qualify to receive the dividend, an investor must own the stock at the close of trading the day before the ex-dividend date. If the investor sells the stock on the ex-dividend date they will receive the dividend. Below are our top rated stocks going ex-dividend in April.
Main Street Capital Corp (MAIN)
Rating: 98/100. Main Street Capital is a financial investment company with an ex-dividend date of April 18th. We really like the fundamentals of MAIN, which is a monthly paying dividend stock. The stock has a dividend yield of 6.9% and a payout ratio of 61%. The company has a 3 year income growth rate of almost 80% and has been paying dividends since 2007. It is in the 5th year of paying dividends now but roughly has a 5% 5 year dividend growth rate.
Universal Corp (UVV)
Rating: 96/100. Universal Corp is a global tobacco company and has an ex-dividend date of April 4th. UVV has a dividend yield of 4.2% and has been paying dividends since 1927. The company has increased its dividend for over 40 years, which we really like. It has a 5 year dividend growth rate of 2.2% which we would like to see higher. UVV has a payout ratio of 64% and a 3 year income growth rate of 9.4%.
Rating: 93/100. Clorox is a household consumer products company and has an ex-dividend date of April 23rd. The company started paying dividends in 1968 and has increased the dividend for 35 years. It has a 5 year dividend growth rate of 15% which we expect to help drive the stock price higher. The stock's performance is the only thing holding Clorox back from receiving a higher rating from us. It is down 2.1% over the last 12 months.
Urstadt Biddle Properties (UBA)
Rating: 92/100. Urstadt Biddle Properties is a REIT with a ex-dividend date of April 3rd. It has a dividend yield of 5.1% and has increased its dividend for 13 consecutive years. REITs are required to payout 90% of the company's income to shareholders so we are not concerned with the payout ratio for this stock. We would like to see UBA improve its low dividend growth rate of 1.7%.
Sysco Corp (SYY)
Rating: 92/100. Sysco Corporation is a food distributor and service company. Sycso has a ex-dividend date of April 3rd. It has a dividend yield of 3.6% and has increased its dividend for 35 consecutive years. The company has a strong 5 year dividend growth rate of 8.2% and a low payout ratio of 54%. SYY has a 3 year net income growth rate of just 1.3% which we would like to see improve before giving it a higher rating. The stock is up just over 7% in the last 12 months.
Mid-American Apartment (MAA)
Rating: 90/100. Mid-American Apartment Communities is a REIT and has an ex-dividend date of April 11th. The company has been paying dividends since 1994 and has a dividend yield of 3.9%. It has a 5 year dividend growth rate of just 1.1% but has a 3 year net income growth rate of 17.3%. We would obviously like to see the dividend grow at a faster rate. So far in 2012 it appears the company will raise the dividend by 5%.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.