Three well-known dividend-paying stocks are set to go ex-dividend on August 10, offering investors the opportunity to collect payouts. SiriusXM (NASDAQ:SIRI), American Electric Power (NASDAQ:AEP), and Timberland Bancorp (NASDAQ:TSBK) all have a deadline of August 7 for investors to own shares in order to qualify for the upcoming dividend payments.
SiriusXM, with a quarterly dividend of $0.27 and an annualized yield of 3.56%, is a solid choice for income-seeking investors. The company’s earnings comfortably cover the dividend payout, making it a reliable option for dividend income. However, SiriusXM has been facing challenges in its core satellite service, and its substantial long-term debt of $9.45 billion is something to keep in mind.
American Electric Power, on the other hand, offers a quarterly dividend of $0.95, recently raised from $0.93, with an annualized yield of 2.95%. The company’s trailing EPS of $5.77 against a $3.80 payout indicates a slightly elevated payout ratio, but this is common for a regulated electric utility with a significant capital plan. American Electric Power serves more than five million customers in 11 states and has reaffirmed its commitment to 7%-9% annual earnings growth through 2030.
Lastly, Timberland Bancorp pays a quarterly dividend of $0.30, recently increased from $0.29, with a yield of 2.46%. The company’s trailing EPS of $4.05 against an annualized $1.12 payout shows that it has a comfortable cushion to cover its dividend payments. Timberland Bancorp is a Washington State community bank that has been consistently paying dividends, making it a reliable choice for income-seeking investors.
Investors should be aware that owning shares before the ex-dividend date is crucial to qualify for the upcoming dividend payments. While the ex-dividend date drop may offset the distribution in the short run, it is essential to ensure that the payout is covered by earnings. All three companies mentioned in this article screen as comfortable in terms of dividend coverage.
In conclusion, investors looking for dividend income should consider these three stocks before the August 7 deadline. While dividends are not a guaranteed source of income, careful consideration of the company’s financial health and dividend coverage can help investors make informed decisions. For any questions or corrections, feel free to contact editorial@247wallst.com.
