Preparing for another round of action.
High-Dividend Stocks Going Ex-Dividend: A Closer Look
Next week, several high-dividend stocks are set to go ex-dividend, offering attractive returns for income-focused investors. These stocks include Neinor Homes, ABC Arbitrage, BBVA, FAT Brands, Verizon, and COSCO Shipping.
Characteristics
- Neinor Homes: A Spanish residential real estate developer and manager, Neinor Homes recently secured €225 million funding with strong investor demand, indicating solid market confidence and financial strength. This supports sustainable dividends, making Neinor an interesting choice for investors.
- ABC Arbitrage: A French financial services firm, ABC Arbitrage allows investors to exploit potential arbitrage opportunities in smaller, less liquid markets. It typically offers attractive dividend yields due to its unique investment strategies.
- BBVA: A major Spanish bank operating since 1857, BBVA generally offers moderate to high dividend yields, reflective of its stable earnings in the financial sector and exposure to European and Latin American markets. The current interest rate turnaround should have positive effects on BBVA, as credit and investment business are driven by lower rates.
- FAT Brands: Operating in the consumer discretionary sector (primarily franchising brands), dividend sustainability depends on consumer demand and operational costs.
- Verizon: A well-established telecom company, Verizon is known for its consistent dividend with a yield attractive to income investors, supported by its dominant market position in U.S. communications.
- COSCO Shipping: A global shipping company, COSCO’s dividends can be affected by global trade fluctuations and operational costs.
Impacts of Going Ex-Dividend
When these stocks go ex-dividend, their share prices typically drop by roughly the dividend amount on the ex-dividend date, reflecting the payout to shareholders. This could present an opportunity for investors seeking to buy these stocks at a discount.
Investors must hold shares on the ex-date to be entitled to the upcoming distribution. For example, Neinor Homes' ex-dividend date is 11.10.2024, offering a dividend yield of 13.4%. COSCO Shipping's ex-dividend date is 08.10.2024, with a dividend yield of 6.1%.
Strong subscription or capital raises, like Neinor Homes’ recent €225 million financing with record demand, can boost investor confidence and positively influence stock performance and dividend sustainability.
Sector and economic sensitivity also play a role. Financials like BBVA and ABC Arbitrage might be sensitive to economic cycles impacting dividend payments, while telecom and consumer sectors like Verizon and FAT Brands typically provide more steady income streams.
Investors should consider the underlying company fundamentals, recent financing activities, and macroeconomic factors affecting their dividend prospects. The BÖRSE ONLINE Global Dividend Stars Index offers a source for exciting dividend stocks. However, it is essential to note that there is a conflict of interest associated with the price of the financial instruments, as Boersenmedien AG has developed the index and holds the rights to it, and has entered into a cooperation agreement with the issuer of the displayed securities, granting the issuer a license to use the index in return for remuneration.
In summary, these high-dividend stocks have strong income appeal but are subject to sector-specific risks and market adjustments once ex-dividend. Investors should conduct thorough research and consider their investment strategies before making decisions.
- Researching Neinor Homes, a Spanish real estate company, shows that its solid market confidence and financial strength, as evidenced by their recent €225 million funding with strong investor demand, make it a potentially interesting choice for those focusing on personal-finance and investing in high-dividend stocks.
- Investors seeking opportunities in the financial services sector might find ABC Arbitrage, a French firm, appealing for its attractive dividend yields due to unique investment strategies that allow exploiting potential arbitrage opportunities in smaller markets.
