Top Nine Stocks Going Ex-Dividend Mid-September

Buying dividends is the technique of buying stocks before the ex dividend date and selling shortly after the ex date at approximately the same price, yet being entitled to the dividend. This generally works only in rising markets.

If you are interested in buying dividends, there are several stocks in several different sectors and industries to choose from. Remember that you have to buy the stock before the ex-dividend date in order to be entitled to the dividend, and you can't sell the stock until after the ex date.

All of the following stocks have market caps over $500 million, P/Es below 20, PEGs below 2, and yields of over 2.5%.

• Regions Financial Corporation (RF) Ex date: 9/15/2008 Yield: 4.9% P/E: 6 PEG: 1.15.
• The Corporate Executive Board Company (EXBD) Ex date: 9/11/2008 Yield: 4.4% P/E: 18 PEG: 1.39.
• United Bankshares, Inc. (UBSI) Ex date: 9/10/2008 Yield: 4.2% P/E: 13 PEG: 1.62.
• National Financial Partners Corp. (NFP) Ex date: 9/12/2008 Yield: 4.1% P/E: 15 PEG: 1.20.
• Bancolombia S.A. (CIB) Ex date: 9/17/2008 Yield: 3.7% P/E: 9 PEG: 1.16.
• Shaw Communications Inc. (SJR) Ex date: 9/11/2008 Yield: 3.2% P/E: 15 PEG: 0.87.
• Corus Entertainment Inc. (CJR) Ex date: 9/11/2008 Yield: 3.1% P/E: 12 PEG: 0.89.
• Pacer International, Inc. (PACR) Ex date: 9/17/2008 Yield: 2.8% P/E: 12 PEG: 0.93.
• Harleysville Group Inc. (HGIC) Ex date: 9/11/2008 Yield: 2.7% P/E: 14 PEG: 1.70.
• The Black & Decker Corporation (BDK) Ex date: 9/10/2008 Yield: 2.6% P/E: 9 PEG: 1.14.

For more details on dividend definitions, check out definitions of dividend dates. If you like dividend stocks, you should check out the the High Yield Utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com.

Disclosure: None

Comments

[khath48:]

what is 'ex-dividend' ? what is the origin of the expression ?

2008 Sep 01 08:42 AM

[John Lounsbury:]

The ex-dividend date is the first day the stock trades without the upcoming dividend. If you buy the stock on the ex-dividend date you do not receive the dividend. If you sell the stock on (or after) the ex-dividend date you receive the dividend. Warning: there is a minimum period of ownership required to get the lower tax rate for eligible dividends.

2008 Sep 01 10:52 AM

[Lisa:]

Isn't there different tax treatment of the dividends, depending on how long you've owned the stock for?

2008 Sep 01 11:23 AM

[Mr. Wynn:]

Buy the stock before the ex-dividend date and don't sell it until after that date has passed. Then you get the dividend without having to hold onto the stock long-term.

2008 Sep 01 11:30 AM

[John Lounsbury:]

I believe you must own the stock for 61 days or longer to qualify for the reduced tax rate on qualified dividends. Consult your tax advisor.

2008 Sep 01 11:58 AM

[CoverIsBetter:]

Stocks typically drop by near the amount of the dividend shortly after it is paid. If you lose on the stock price, and pay taxes on the dividend, how good is it?

2008 Sep 01 01:23 PM

[notsosmart:]

most of the time this maneuver is sheer nonsense.if it was easy & a good money maker all would be doing it.

2008 Sep 01 03:02 PM

[Donald Johnson:]

SJR looks interesting fundamentally and technically. M* estimates its fair value at $27 (4*).

Charts are here:

stockcharts.com/charts...

I agree that the maneuver makes little sense. It looks like a stunt or gimmick. Buy the stock, sell covered calls and collect the dividend and cap appreciation.

2008 Sep 01 11:36 PM

[Donald Johnson:]

Options trade on SJR is too thin and annualized yields are too low for me.

2008 Sep 02 12:11 AM

[Fabien Hug:]

Well it works and it doesn't. It is a good strategy when market is moving higher but not too much. It worked very well this spring when european corps were paying dividends (5 to 8% in one shot) and the market was strong enough to recup the dividend payment but not strong enough to make you regret a 20% capital gain. Now, I wouldn't touch this and quarterly dividends are not high enough to give an incentive.

2008 Sep 02 01:01 AM

[Eskuire:]

Dividends in American companies are somewhat low and have no favorable tax treatment for foreigners. Canadian banks pay dividends in the 4 to 5 percent range, Canadian income trusts even more, and, for example, Amerigo Resources (ARG.TO), listed on the Toronto Stock Exchange (TSX), is a Chilean copper and molybdenum mining company with good financials that pays a 6.5 cent dividend semi-annually. This amounts to an 8.72% yield that is tax-favoured in Canada and, even for non-Canadians, superior to anemic American yields.

2008 Sep 02 07:45 AM

[notsosmart:]

check out FRO &NAT. hold it 61 days or more & you will pay a max of 15% fed.income tax for now.it has been a great deal for me. i have no agenda.i have no connection to wall st or the stocks mentioned.

2008 Sep 02 02:36 PM

[WEBISKING:]

I would use better stocks like Alria Kraft Pm JNJ etc

2008 Sep 03 04:19 PM