Shares offering substantial dividends distributed prior to the ex-date this week
Investors seeking stable income streams and attractive yields should consider high-dividend stocks going ex-dividend in November 2024. These stocks often offer yields above 4-5%, with some monthly dividend payers yielding above 10-15%, especially in Business Development Companies (BDCs) and Real Estate Investment Trusts (REITs).
Key Characteristics
High-yielding stocks and funds usually have consistent dividend payments, often monthly or quarterly, and exposure to sectors like technology finance, healthcare, infrastructure, real estate, and energy. Their growth prospects depend on the sector dynamics, management of debt or asset portfolios, and economic conditions affecting their earnings and dividend sustainability.
High Dividend Yields
Many high-yielding stocks offer yields often exceeding 5%, with some monthly dividend payers yielding above 10-15%, especially in BDCs like Horizon Technology Finance Corp., which had a 16.7% yield but with cyclical investment income fluctuations.
Regular Dividend Payments
These stocks often pay dividends monthly or quarterly, providing steady income streams.
Sectoral Focus
BDCs supporting venture capital and loans to mid-sized companies, REITs focusing on commercial properties, and energy companies like Chevron often provide these dividends. Dividend Aristocrats such as Realty Income Corp and Chevron offer yields around 4.5-5.6% with strong dividend track records.
Risk and Volatility
Some high-yield funds, such as YieldMax ETFs, use synthetic covered call strategies to generate very high yields (>30-40%) but carry high risk and volatility, including potential capital loss.
International Exposure
ETFs like Vanguard's International High Dividend Yield ETF (VYMI) invest in high dividend yield non-US companies, diversifying geographic risk but also influenced by foreign market dynamics.
Growth Prospects
Growth prospects for these stocks in November 2024 vary widely by type but are generally driven by sector performance, economic conditions, and the company’s ability to sustain and grow dividends.
Moderate to High Yield Stocks in Stable Sectors
Dividend Aristocrats and established REITs often combine growing dividends with moderate capital appreciation, offering resilient income but somewhat limited rapid growth.
BDCs and Financial Sector Stocks
These may have attractive yields but face variable income performance depending on loan portfolio health and interest rate environments. For example, Horizon Technology reported a slight decline in investment income year-over-year, indicating some sensitivity to market conditions.
Specialized Income Funds
Very high-yield funds like YieldMax ETFs have short-term income focus but heightened risk, thus growth prospects are tied to option market conditions and underlying asset price volatility rather than underlying business fundamentals.
UK and Other International Dividend Stocks
Some UK dividend stocks showed strong price rebounds and forward yields around 2-3%, providing balanced income and growth opportunities via capital gains.
Stocks Going Ex-Dividend This Week
The following stocks are going ex-dividend this week:
- Postal Realty, a US REIT offering an attractive dividend yield and a stable business model, with an ex-dividend date of 04.11.2024. Postal Realty rents buildings exclusively to the United States Postal Service.
- Omega Healthcare, which has managed to perform well during the crisis of real estate values in the US, contrary to experts' predictions, with an ex-dividend date of 04.11.2024.
- Ashmore, with an ex-dividend date of 06.11.2024, is a global independent investment management firm.
- Heritage Commerce, with an ex-dividend date of 06.11.2024, is a financial services holding company.
- Pfizer, with an ex-dividend date of 07.11.2024, is an American multinational pharmaceutical corporation.
- Main Street Capital, with an unspecified ex-dividend date, is a principal investment firm that focuses on providing long-term debt and equity capital to small and medium-sized companies. Main Street Capital has a dividend yield of 8.0% in the coming week.
- Premier Financial, with an ex-dividend date of 07.11.2024, is a Canadian lender that provides financing solutions to small businesses and consumers.
Dividends are typically paid out quarterly for American stocks or monthly for REITs, and not in a single lump sum. Investors should balance yield attractiveness with risk tolerance, especially considering some extremely high-yield ETFs involve complex option strategies and volatility.
Investors may find attractive yields in the stock market by considering financial sector stocks, such as Horizon Technology Finance Corp., which offers high yields but with cyclical investment income fluctuations. Additionally, in the realm of real estate, Real Estate Investment Trusts (REITs) like Postal Realty, renting buildings exclusively to the United States Postal Service, and Omega Healthcare, which has managed to perform well during the crisis of real estate values, provide steady income streams.
