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

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Many stocks will reach their ex-dividend date next Wednesday, 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 May 31 as their ex-dividend date. All annual yields are estimated.

Frontier Communications ( FTR ) yields 9.26% annually and has a market cap of $4.29 billion. The communications company will pay a quarterly dividend of $0.10 on June 28, and its quarterly yield will be 2.35% based on today's closing price of $4.25. The company first paid a dividend in 1990, from 1992 through 1995, and in 1998. It resumed paying a quarterly dividend in 2004.

Williams Companies ( WMB ) yields 3.95% annually and has a market cap of $24.25 billion. The energy infrastructure company will pay a quarterly dividend of $0.3525 on June 24, and the quarterly yield will be 0.98% based on yesterday's closing price of $35.88. The company has paid a quarterly dividend since 1997.

PepsiCo ( PEP ) yields 2.80% annually and has a market cap of $124.97 billion. The global food and beverage company will pay a quarterly dividend of $0.5675 on June 28, and the quarterly yield will be 0.70% based on today's closing price of $81.12. The company has paid a quarterly dividend since 1991, and each dividend payment has either increased or remained the same from the prior quarter.

Coach ( COH ) yields 2.31% annually and has a market cap of $16.50 billion. The handbag and apparel company will pay a quarterly dividend of $0.3375 on July 1, and the quarterly yield of the dividend will be 0.58% based on yesterday's closing price of $58.23. The company has paid a quarterly dividend since 2009.

Bank of America ( BAC ) yields 0.29% annually and has a market cap of $146.94 billion. The global provider of banking and financial services will pay a quarterly dividend of $0.01 on June 28, and the quarterly yield will be 0.07% based on today's closing price of $13.48. The company has paid a quarterly dividend since 1986.

These companies also have their ex-dividend date on June 5. All annual yields are estimated.

American National Insurance (ANAT) yields 3.07% annually and will pay a quarterly dividend of $0.77 on June 21.

Potlatch (PCH) yields 2.63% quarterly and will pay a quarterly dividend of $0.31 on June 27.

Sealed Air Corporation (SEE) yields 2.12% annually and will pay a quarterly dividend of $0.13 on June 21.

Commerce Bancshares (CBSH) yields 2.05% quarterly and will pay a quarterly dividend of $0.35 on June 24.

DeVry (DV) yields 1.09% annually and will pay a semi-annual dividend of $0.17 on June 28.

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: BAC , COH , FTR , PEP , WMB

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