3 Big-Yielding Stocks to Buy Before the Ex-Dividend Date

If you’re taking positions in three high-yield stocks in March 2023, buy them before their ex-dividend dates to receive the upcoming dividend payments in April.

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Most long-term investors, including retirees, hold or own dividend stocks to collect regular dividend payouts, whether quarterly or monthly. However, other income investors are particular about ex-dividend dates to get the most out of dividend returns.

If you intend to take positions in TELUS (TSX:T), TC Energy (TSX:TRP), or Rogers Sugar (TSX:RSI) in March 2023, take note of their ex-dividend dates. Purchase these big-yielding stocks before their ex-dividend dates to receive the upcoming dividend payments.

Industry-best growth profile

TELUS trades at $27.17 per share (+3.98% year to date) and pays a juicy 5.16% dividend. The ex-dividend date of Canada’s second-largest telecommunications is March 9, 2023, and the stock will pay a cash dividend of $0.0351 on April 3, 2023.

Despite a challenging macroeconomic environment, the $39 billion telco posted double-digit revenue growth and robust cash flow in 2022. Darren Entwistle, president and chief executive officer (CEO) of TELUS, said, “Our results are buttressed by our highly differentiated and powerful asset mix geared towards high-growth, technology-oriented verticals.”

Apart from the strong momentum across the telecom business, TELUS International, TELUS Health, and TELUS Agriculture & Consumer Goods bolster the industry-best growth profile of the 5G stock. TELUS is a defensive holding for its solid underlying businesses.

Dividend grower

TC Energy’s next ex-dividend date is March 30, 2023, with the corresponding payment date on April 28, 2023. The $56.22 billion energy infrastructure company is a major player in North America’s oil & gas midstream industry. At $56.22 per share (+4.15% year to date), the dividend offer is a mouth-watering 6.7%.

The energy stock is a Dividend Aristocrat owing to 23 consecutive years of dividend hikes. In the fourth quarter (Q4) of 2022, the board of directors approved a 3.3% increase in the common share dividend.

François Poirier, TC Energy’s president and CEO said 2022 was a record setting year. He said, “Our business remains resilient and is expected to deliver strong comparable EBITDA growth in 2023. We have a defined funding plan in place that will allow us to continue to progress our industry-leading capital program and accelerate our deleveraging target.”

Firm demand

Sugar is a consumer staple and a low-growth business, but it’s also enduring and stable. Moreover, Rogers Sugar is a reliable passive-income provider. At only $6.13 per share (+7.73% year to date), you can partake of the 5.86% dividend — an above-average industry level. Besides the sustained record of paying dividends in the last 10 years, the stock price hardly fluctuates.

Take note of the ex-dividend date on March 30, 2023, and the $640.15 million sugar producer will pay $0.09 per share on April 19, 2023. In Q1 2023, revenues and adjusted net earnings increased 13.2% and 40% to $261.44 million and $15.35 million versus Q1 2022.

Mike Walton, president and CEO of Rogers and Lantic Inc., said, “Fiscal 2023 began well as the trends established in 2022 continued to drive strong sugar performance in the first quarter.” Management expects sugar to maintain its firm demand and maple to recover when inflationary pressures recede.  

Cut-off point

The ex-dividend date is the cut-off point for prospective buyers to be credited a pending dividend. However, the share price usually declines on ex-dividend dates. You wouldn’t be eligible to receive the dividends if you bought the stock on or after the ex-dividend date.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends TELUS and Telus International. The Motley Fool has a disclosure policy.

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