X Factor: 5 Stocks Reaching Their Ex-Dividend Date on May 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 May 13 as their ex-dividend date. All annual yields are estimated.

ARMOUR Residential REIT ( ARR ) yields 13.21% annually and has a market cap $1.97 billion. The real estate investment trust , or REIT, will pay a monthly dividend of $0.07 on May 30, and the monthly yield will be 1.10% based on yesterday's closing price of $6.36. The company has paid a monthly dividend since 2010.

Exelon Corporation ( EXC ) yields 3.46% annually and has a market cap of $30.62 billion. The utility services holding company will pay a quarterly dividend of $0.31 on June 10, and the quarterly yield will be 0.87% based on yesterday's closing price of $35.81. The company has paid a quarterly dividend since 1980.

DuPont ( DD ) yields 3.34% annually and has a market cap of $49.64 billion. The global science and technology company will pay a quarterly dividend of $0.45 on June 12, and its quarterly yield will be 0.63% based on yesterday's closing price of $53.94. The company has paid a quarterly dividend since 1962, and each dividend payment has either increased or remained the same from the prior quarter.

Talisman Energy ( TLM ) yields 2.26% annually and has a market cap of $11.08 billion. The upstream oil and gas company will pay a semi-annual dividend of $0.0675 on June 28, and the quarterly yield will be 0.59% based on Friday's closing price of $11.49. The company has paid a semi-annual dividend since 2001.

Target ( TGT ) yields 2.04% annually and has a market cap of $45.22 billion. The global operating of general merchandise stores will pay a quarterly dividend of $0.36 on June 10, and the quarterly yield of the dividend will be 0.51% based on Friday's closing price of $70.50. The company has paid a quarterly dividend since 1983, and each dividend payment has either increased or remained the same from the prior quarter.

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

Shaw Communications (SJR) yields 4.25% annually and will pay a monthly dividend of $0.085 on May 30.

Con-way (CNW) yields 1.20% annually and will pay a quarterly dividend of $0.10 on June 14.

Energen Corporation (EGN) yields 1.20% annually and will pay a quarterly dividend of $0.145 on June 3.

OfficeMax (OMX) yields 0.69% annually and will pay a quarterly dividend of $0.02 on May 31.

MAXIMUS (MMS) yields 0.47% annually and will pay a quarterly dividend of $0.09 on May 31.

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: ARR , DD , EXC , TGT , TLM

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