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Review the Dividend, Yield and Ex-Dividend Date for Shares Using CIBC Investor’s Edge

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It’s fun to buy stocks that pay a dividend monthly, four times a year or annually. Who doesn’t like to get paid without going out to work?! Another benefit that is often overlooked is that the dividend payment may increase your willpower to stick with a good stock even if it is beaten down temporarily along with the rest of the market. Before buying a dividend-paying stock, I usually check on the yield, payment frequency and ex-dividend date. Then I place my buy order. Here’s how you can use your CIBC Investor’s Edge account to get the facts.

Danger! Dividends are NOT Guaranteed. Time for More Research.

Sometimes the listed dividend seems astounding. Perhaps the stock is paying an Indicated Annual Dividend of $4 and the share price is $20. That sounds fabulous. Or does it?

Companies can change their dividend payment whenever they want, with no advance notice, and can even stop paying altogether. Buying a dividend-paying stock is not comparable to buying a GIC or a term deposit.

If a company has been paying dividends regularly for years, Investor’s Edge will be able to find and report the annual dividend is fairly easily. Some businesses, however, only pay dividends sporadically. Their dividend could be reported as if it’s guaranteed to continue. Be wary!

If dividend payments matter to you, and will influence your decision to buy a stock, please visit the company of interest’s own website. Look for their Investor Relations page. Find their Dividend History information. Have they been paying dividends steadily? Has the amount of the dividend payment been consistent, preferably growing, or wildly variable?

If you can’t find much information on the company’s site, that should be a warning. LNF, for example, pays a regular quarterly dividend. From time to time, it also pays a bonus dividend if the company’s success has been remarkable. It’s not a business, however, which is very interested in its shareholders. Finding information about its dividend history and payment plans often requires reading its news releases. It’s a good company to consider holding but not if the dividend must be predictable for you to consider a purchase.

Dividend Yields Are Percentages and Therefore Can Confuse

A Dividend Yield is not the same as an annual interest rate, even if it is expressed as a percentage. When share prices go up, dividend yields go down. If the price tanks, the yield rises. So what you see listed is not necessarily what you will get. What you get depends on the price you pay for the stock. If you only want a stock if the yield is, say, 4% or higher, you should consider using a limit order and set a maximum price you are willing to pay per share.

High yields (over 5%) are not normal. If the yield is very high, a dividend cut may be looming. Is the company going to continue paying such a high dividend if its stock value is so low?

In theory, there is a price drop both the first trading day after the stock goes Ex-dividend and the day the dividend is paid. You may want to wait and buy on one of those days. Market conditions could eliminate any dip with no warning, however.

Will You Get the Next Dividend?

If a stock pays a dividend monthly, missing the next payment by buying one day too late stings but only like a mosquito bite. Missing the next annual dividend payment by one day stings like a horsefly bite.

So if it’s of interest, check the Ex-dividend Date before buying.

You must have your purchase order filled BEFORE this date to receive the next dividend. So if it is May 29 and the Ex-Dividend date is May 29, you won’t get the next dividend payment if you buy today.

Note: The actual day you will get the dividend payment is not listed on this screen. It’s not uncommon for dividends to be paid a month or even two months after the ex-dividend date. If it matters when you will get paid, read the press releases for the company, or go to the company’s website and check Investor Relations section for info.

Why the Dividend Frequency Might Matter

If you are building an income-producing portfolio, you may find the dividend frequency important. A company paying an annual dividend may be less suitable to you than one that pays monthly.

Unfortunately, unlike InvestorLine, Investor’s Edge does not report the dividend frequency directly. Instead you have to do a little mental math.

If the Latest Dividend, for instance, was $1 and the Annual Dividend is $4, it appears to pay quarterly.

To be sure, however, you will have to visit the company’s website and check.

How to Check the Dividend Yield, Timing and Ex-Dividend Date to See if You Will Get Paid the Next Dividend

  1. Go to CIBC Investor’s Edge at: https://www.investorsedge.cibc.com/ie/
  2. To sign in to your CIBC Investor’s Edge account/s:
    1. In the User ID field, type your User ID.
    2. In the Password field, type your password.
    3. Click on the Sign On button.
  3. From the list on the left side, click on Quotes and Research, then click on Market Centre.
  4. In the Symbol field, type the stock exchange code for the company you are interested in.
    For example, I typed TD.
  5. Click on the View button.
  6. In the facts box, it should list:
    • Latest Dividend
    • Yield
    • Ex-Dividend Date
    • Annual Dividend
  7. Unlike BMO InvestorLine, it does not state the Dividend Frequency. You can estimate it by comparing the Latest Dividend with the Annual Dividend. To be certain, however, you will need to check another source.
  8. When you are finished reviewing the dividend information, click on the Sign Off link.
  9. For increased security, close your browser session.

Conclusions

You probably won’t buy many stocks just because of their dividends. The dividend might, though, play an important role in sorting through similar stocks. The CIBC Investor’s Edge Market Centre information is a useful place to start the comparison but check the companies’ own websites to get the details.

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Review the Dividend Yield, Timing and Ex-Dividend Date for Shares of a Company’s Stock Using BMO InvestorLine

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There are advantages to buying stocks that pay a dividend monthly, four times a year or annually. One sometimes overlooked benefit is that it may increase your willpower to stick with a good stock even if its price is driven down temporarily. If you do plan to buy a dividend-paying stock, you may want to check on the yield, payment frequency and ex-dividend date before you place your order to purchase. Here’s how you can use your BMO InvestorLine account to get the facts.

How to Check the Dividend Yield, Timing and Ex-Dividend Date to See if You Will Get Paid the Next Dividend

  1. Go to BMO InvestorLine at: https://www.bmoinvestorline.com/
  2. To sign in to your BMO InvestorLine account/s:
    1. In the User ID or Account # field, type your account number or if you have grouped your accounts under one User ID, type your User ID.
    2. In the Password field, type your password.
    3. Click on the Go button.
  3. Click on the Quotes & Tools tab.
  4. In the Symbol field, type the stock exchange code for the company you are interested in.
    For example, I typed SU for Suncor.
  5. Click on the Go button.
  6. In the facts box, on the right hand side, it should list:
    • Indicated Annual Dividend
    • Dividend Yield
    • Ex-Dividend Date
    • Dividend Frequency
  7. When you are finished reviewing the dividend information, click on the Sign Out link.
  8. For increased security, close your browser session.

Remember Dividends are NOT Guaranteed! More Research may be Needed

You may see an amazing dividend offered. Perhaps the stock is paying an Indicated Annual Dividend of $2 and the share price is $10. Sounds too good to be true! It likely is. Companies can change their dividend payment at any time, with no warning, and can cancel dividend payments with no forewarning. Buying a dividend-paying stock is NOT like buying a GIC or term deposit.

For companies that have been paying dividends steadily for many years, the indicated annual dividend is fairly easy for InvestorLine to find and report. Some companies, however, only pay dividends once in a while. Their dividend may still be reported by InvestorLine as if it is an established fact. BE CAREFUL!

If the dividend is an important part of your decision to buy a stock, visit that company’s own website. Look for their Investor Relations information. Find their Dividend History information. Check whether they have been paying dividends steadily. Check whether the amount of the dividend payment is consistent or wildly different.

For example, CWL is an executive recruitment agency (and other things.) On the BMO InvestorLine Quotes+ screen, today, it says for CWL

  • Indicated Annual Dividend: 0.06
  • Dividend Yield 7.143
  • Ex-Dividend Date Apr 18
  • Dividend Frequency Quarterly

Sounds good, right?

Now go to the Caldwell Partners website, Investor Relations page.
Surprisingly, there is no dividend history information tabulated. This should sound a warning bell.

If you look through the annual reports, you will see that in some years they did not pay a dividend.

Next, off to Morningstar to see what they report. They state the Dividend in 2008 was 0.06, but in 2009, 2010 and 2011 it was 0! This is not a reliable steady dividend. Something to consider before buying shares in the company.

Dividend Yields Can be Misleading

Be careful of the Dividend Yield, as well. It looks like an interest rate, but it’s not. If the price of a share goes up, the dividend yield goes down. If the price sinks, the yield grows. So what you see reported is not necessarily what you would get. What you get depends what price you pay at the instant your order is filled. If you are only interested in a stock if the yield is, say, 3% or higher, you may have to put in a limit order to restrict the maximum price you are willing to pay per share.

Also remember that high yields are not normal. If the yield is very high, the company may decide to cut the dividend in the future. Ask yourself whether you think the company can sustain paying such a high dividend if its stock value is so low.

Also remember that for some shares, there is often a dip in price both the first trading day after the stock goes Ex-dividend and the day the dividend is paid. You may want to defer your purchase to one of those days, although market conditions could eliminate any dip with no warning.

When Should You Buy to Still Get the Next Dividend?

If it’s of interest, check the Ex-dividend date. You must have your purchase request filled BEFORE this date to receive the next dividend. So if it is May 29 and the Ex-Dividend date is May 29, it’s already too late to get the next dividend payment.

Note: The actual dividend payment date is not reported on this screen. It’s not unusual for dividends to be paid one month or even two months after the ex-dividend date. If the payment date matters to you, read the press releases for the company, or go to the company’s website and check under Investor Relations.

The Dividend Frequency Can Be Useful

If you are trying to create an income-generating portfolio, you may be quite interested in the Dividend Frequency information. A company that only pays one annual dividend may be less desirable to you than one that pays a monthly dividend.

Conclusions
It’s unlikely that you will buy a stock solely based on its dividend. The dividend, though, can be an important piece of the puzzle of picking between two or three interesting stocks. The BMO InvestorLine Quotes+ information is a good starting place for comparison, but remember to check for more details on a business’s own website to get the entire picture.

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If you’re considering buying a dividend-paying stock what do you consider? Please share your experiences with a comment.