X Factor: 5 Stocks Reaching Their Ex-Dividend Date on June 13

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Many stocks will reach their ex-dividend date next Thursday, which is significant for investors as the seller of the stock on that date, not the buyer, receives the most recent dividend.

A stock must be bought one day before the ex-dividend date to claim any dividends that have been announced but not yet paid. The company determines on the record date, which usually occurs two days after the ex-dividend date, which shareholders qualify for the dividend. Shareholders listed as holders of record after the record date then receive their dividend on the date of payment established by the company. Those purchasing right before the record date forfeit the dividend and normally get the stock for a reduced amount.

It may seem an anachronism in this era of high frequency trading, but the dividend rate rules are in force since it can still take up to three business days for transactions to be credited to and settled in an investor's account.

Below are five stocks that schedule June 13 as their ex-dividend date. All annual yields are estimated.

Merck ( MRK ) yields 3.53% annually and has a market cap of $147.15 billion. The global provider of health solutions will pay a quarterly dividend of $0.43 on July 8, and the quarterly yield will be 0.88% based on yesterday's closing price of $48.73. The company has paid a quarterly dividend since 1970, and each dividend payment has either increased or remained the same from the prior quarter.

H&R Block ( HRB ) yields 2.83% annually and has a market cap of $7.71 billion. The global provider of tax preparation services will pay a quarterly dividend of $0.20 on July 1, and its quarterly yield will be 0.71% based on yesterday's closing price of $28.30. The company has paid a quarterly dividend since the second half of 1977.

Huntington Bancshares ( HBAN ) yields 2.66% annually and has a market cap of $6.30 billion. The holding company of the Huntington National Bank will pay a quarterly dividend of $0.05 on July 1, and the quarterly yield of the dividend will be 0.66% based on yesterday's closing price of $7.51. The company has paid a quarterly dividend since 1980.

Chico's FAS ( CHS ) yields 1.22% annually and has a market cap of $2.85 billion. The specialty apparel retailer will pay a quarterly dividend of $0.055 on July 1, and the quarterly yield will be 0.31% based on yesterday's closing price of $18. The company has paid a quarterly dividend since 2010.

Thermo Fisher Scientific ( TMO ) yields 0.70% annually and has a market cap of $30.94 billion. The provider of analytical instruments and other research tools will pay a quarterly dividend of $0.15 on July 15, and the quarterly yield will be 0.17% based on yesterday's closing price of $86.20. The company first paid a dividend in 1993 and 2001 and began paying a quarterly dividend last year.

These companies also have their ex-dividend date on June 13. All annual yields are estimated.

UIL Holdings (UIL) yields 4.48% quarterly and will pay a quarterly dividend of $0.432 on July 1.

Dr Pepper Snapple Group (DPS) yields 3.27% annually and will pay a quarterly dividend of $0.38 on July 5.

SEI Investments (SEIC) yields 1.35% annually and will pay a quarterly dividend of $0.20 on June 25.

NewMarket Corporation (NEU) yields 1.32% annually and will pay a quarterly dividend of $0.90 on July 1.

Air Lease (AL) yields 0.37% annually and will pay a quarterly dividend of $0.025 on July 8.

Purchase -- and have your broker settle -- before the ex-dividend date to secure the dividend.

Twitter: @ChrisWitrak



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: CHS , HBAN , HRB , MRK , TMO

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