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. Arctic Cat Inc. ( ACAT): Designs, engineers, manufactures, and markets snowmobiles and all-terrain vehicles (ATVs) under the Arctic Cat brand name in the United States and internationally. Market cap at $759.33M, most recent closing price at $57.46. 

Net institutional purchases in the current quarter at 1.3M shares, which represents about 10.06% of the company's float of 12.92M shares.

Major Shareholders Include: Goldman Sachs Group Inc. (5.3% of float); and BlackRock Fund Advisors (4.8% of float). 

Ex-dividend date on 8/28/13.

 

2. Argo Group International Holdings, Ltd. ( AGII): Underwrites specialty insurance and reinsurance products in the property and casualty market worldwide. Market cap at $1.16B, most recent closing price at $43.04. 

Net institutional purchases in the current quarter at 1.6M shares, which represents about 6.05% of the company's float of 26.43M shares. 

Major Shareholders Include: Wells Fargo & Co. (12.11% of float); and Dimensional Fund Advisors LP (8.99% of float).

Ex-dividend date on 8/28/13.

 

3. Sotheby's ( BID): An auctioneer of various properties including fine art, antiques, decorative art, jewelry, and collectibles. Market cap at $3.01B, most recent closing price at $44.13. 

Net institutional purchases in the current quarter at 6.5M shares, which represents about 9.81% of the company's float of 66.27M shares.

Major Shareholders Include: The Vanguard Group (5.43% of float); Royce and Associates (5.37% of float).

Ex-dividend date on 8/29/13.

 

4. Diebold, Incorporated ( DBD): Provides integrated self-service delivery and security systems and services primarily to the financial, commercial, government, and retail markets worldwide. Market cap at $1.92B, most recent closing price at $30.11. 

Net institutional purchases in the current quarter at 3.9M shares, which represents about 6.2% of the company's float of 62.89M shares. 

Major Shareholders: State Street Corporation (10.69% of float); Perkins Investment Management (8.45% of float).

Ex-dividend date on 8/21/13.

 

5. Delek US Holdings Inc. ( DK): Engages in refining, wholesaling, and marketing petroleum products in the United States. Market cap at $1.72B, most recent closing price at $29.21. 

Net institutional purchases in the current quarter at 11.0M shares, which represents about 28.79% of the company's float of 38.21M shares.

Major Shareholders: Renaissance Technologies (4.33% of float); The Vanguard Group (4.15% of float).

Ex-dividend date on 8/23/13.

 

6. Energy XXI (Bermuda) Limited ( EXXI): Engages in the acquisition, exploration, development, and operation of oil and natural gas properties onshore in Louisiana and Texas and offshore in the Gulf of Mexico. Market cap at $2.14B, most recent closing price at $26.98. 

Net institutional purchases in the current quarter at 4.7M shares, which represents about 7.1% of the company's float of 66.23M shares. 

Major Shareholders Include: Wells Fargo & Co. (8.67% of float); Mount Kellett Capital Management (7.47% of float). 

Ex-dividend date on 8/28/13.

 

 

( List compiled by James Dennin, Kapitall writer. Analyst ratings sourced from Zacks Investment Research, institutional data sourced from Finviz, all other data sourced from Finviz.)

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