3 Dividend Stocks Ready to Pay You – If You Buy Them This Week

Quick Read

SiriusXM and American Electric Power both go ex-dividend August 10, offering yields of 3.56% and 2.95% with earnings comfortably covering both payouts.

AEP’s commercial load climbed 15% on data-center demand, backing a $78 billion capital plan and 7%-9% annual earnings growth through 2030.

Timberland Bancorp issues its 55th consecutive quarterly dividend August 24, with $4.05 EPS covering a $1.12 annual payout at just 11x earnings.

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Three well-known dividend payers share a single deadline this week. SiriusXM (NASDAQ:SIRI), American Electric Power (NASDAQ:AEP), and Timberland Bancorp (NASDAQ:TSBK) all go ex-dividend on Monday, August 10. To collect the upcoming payment on any of them, shares must be owned by the close of Friday, August 7.

Here’s what you need to know to collect the distributions. To receive a dividend, you must hold shares before the ex-dividend date. Buy on August 7 or earlier and you’re eligible; buy on August 10 or after and the seller keeps that payout.

Don’t assume that this is “free money.” On the ex-date, the stock typically opens lower by roughly the dividend amount, so this is really about eligibility for the cash. Still, there are some intriguing income opportunities here, so feel free to check out these three dividend stocks today.

SiriusXM (SIRI)

SiriusXM stock pays a quarterly dividend of $0.27, or $1.08 annualized, for a yield of 3.56%. The ex-date is August 10, so shares must be bought by August 7 to qualify for the August 26 payment. SiriusXM’s trailing EPS of $2.49 comfortably covers the $1.08 payout, and the trailing P/E ratio is 12.35x, so on an earnings basis the dividend looks well-supported.

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The caveat is the business itself. SiriusXM has been working through subscriber pressure in its core satellite service and carries meaningful long-term debt of $9.45 billion, though free cash flow has been climbing and management raised full-year guidance after Q2. SiriusXM stock is up 49% over the past year, so the payout is covered on earnings, though the story remains a turnaround in progress.

American Electric Power (AEP)

American Electric Power stock offers a quarterly dividend of $0.95, recently lifted from $0.93, for an annualized $3.80 and a yield of 2.95%. The ex-date is August 10, so the buy-by date is August 7, and this one pays on September 10, not in August. AEP’s trailing EPS is $5.77 against a $3.80 payout, and the trailing P/E ratio sits at 22.24x. That payout ratio is elevated but normal for a regulated electric utility funding a large capital plan.

American Electric Power serves more than five million customers in 11 states and management reaffirmed a 7% to 9% annual earnings growth target through 2030 alongside a $78 billion five-year capital plan. The company’s commercial load rose 14.9% in its Vertically Integrated segment, reflecting the data-center and hyperscaler electricity demand tailwind that has become the utility sector’s biggest growth story. AEP stock trades at $126.18, below the analyst target of $145.10.

Timberland Bancorp (TSBK)

Timberland Bancorp stock pays a quarterly dividend of $0.30, just raised from $0.29, with a yield of 2.46%. The ex-date is August 10, so shares must be held before that morning (buy by August 7) to receive the August 24 payment. Timberland’s trailing EPS of $4.05 against an annualized $1.12 payout leaves a wide cushion, and the trailing P/E ratio is 11.13x. Furthermore, coverage on an EPS basis is clean for Timberland Bancorp.

To sum it up, Timberland Bancorp is a Washington State community bank based in Hoquiam, and this marks its 55th consecutive quarterly dividend. The company’s most recent quarter showed a net interest margin of 3.85%, efficiency ratio of 53.4%, and deposits up 6% year over year, though non-performing assets ticked up to 0.43% of total assets. Timberland Bancorp stock has climbed 48% over the past year, so the yield looks modest partly because the price has run.

The Bottom Line

All three names share the same August 10 ex-date, which means shares must be owned by the close of Friday, August 7. SiriusXM pays August 26, Timberland Bancorp pays August 24, and American Electric Power pays September 10, so the payment calendars differ even though the deadline does not.

Chasing a single dividend isn’t a viable investment strategy, and the ex-date drop tends to offset the distribution in the short run. What matters is whether the payout is covered by earnings, and on that front, all three of these companies screen as comfortable today. Miss the August 7 buy-by window on any of them, though, and you’re waiting for the next cycle.

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