This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

6 Ex-Dividend Stocks Attracting Hedge Funds

​James Dennin, Kapitall: Dividend payouts are one way larger companies reward their shareholders, and signal that the corporation itselt is in good standing. Profits, earnings, or extra stock gets paid out to all of the people who bought shares in the company before the  record date, the final day that you can purchase the stock and still qualify for dividend payments. The ex-dividend date, referred to by insiders simply as the ex-date is the date on which these dividends are paid out.

[Read more from Kapitall: Top 20 Picks from a Value-Oriented Fund]

To find income oppportunities, we ran a screen for all US-traded common stocks who are issuing dividend payments before the end of August. To narrow our list we looked for indicators of  institutional buying by screening for stocks that experienced significant net institutional purchases over the last quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these stocks to outperform in the future.

However, it's important to remember that dividend payments are usually made by larger, more established companies. To profit off of a dividend payment, you must have the stock in your portfolio before the record date. Otherwise, you've just bought a potentially expensive stock that is unlikely to grow in value very much. Smaller companies, and high-growth companies don't usually issue dividends, because they are reinvesting profits heavily to maintain that high growth.

Click on the image below to see analyst ratings over time. 

Dig Deeper:  Compare analyst ratings to annual returns  for stocks mentioned.

Do approaching ex-dividend dates make these stocks worthwhile investments? Use the list below as a starting point for your own analysis: 

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs