X Factor: 5 Stocks Reaching Their Ex-Dividend Date on May 15

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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 15 as their ex-dividend date. All annual yields are estimated.

Duke Energy Corporation ( DUK ) yields 4.16% annually and has a market cap of $51.98 billion. The energy company in the US and Latin America will pay a quarterly dividend of $0.765 on June 17, and its quarterly yield will be 1.04% based on yesterday's closing price of $73.70. The company has paid a quarterly dividend since 1983.

Chevron Corporation ( CVX ) yields 3.25% annually and has a market cap of $293.03 billion. The global petroleum, chemical, mining, and power generation company will pay a quarterly dividend of $1 on June 10, and the quarterly yield will be 0.81% based on yesterday's closing price of $123.04. The company has paid a quarterly dividend since 1970, and each dividend payment has either increased or remained the same from the prior quarter.

Invesco ( IVZ ) yields 2.76% annually and has a market cap of $14.50 billion. The publicly owned investment manager will pay a quarterly dividend of $0.225 on June 7, and the quarterly yield will be 0.69% based on yesterday's closing price of $32.61. The company has paid a dividend since 1996 and a quarterly dividend since 2008.

United Technologies ( UTX ) yields 2.28% annually and has a market cap of $86.29 billion. The provider of technology products and services will pay a quarterly dividend of $0.535 on June 10, and the quarterly yield of the dividend will be 0.57% based on yesterday's closing price of $93.87. The company has paid a quarterly dividend since 1980, and each dividend payment has either increased or remained the same from the prior quarter.

Visa ( V ) yields 0.73% annually and has market cap of $116.87 billion. The payments technology company will pay a quarterly dividend of $0.33 on June 4, and the quarterly yield will be 0.18% based on yesterday's closing price of $179.79. The company has paid a quarterly dividend since the middle of 2008.

These companies also have their ex-dividend date on May 15. All annual yields are estimated.

Diebold (DBD) yields 3.77% annually and will pay a quarterly dividend of $0.2875 on June 7.

The J. M. Smucker Company (SJM) yields 2.01% annually and will pay a quarterly dividend of $0.52 on June 3.

The Brink's Company (BCO) yields 1.49% annually and will pay a quarterly dividend of $0.10 on July 3.

Lindsay Corporation (LNN) yields 0.58% annually and will pay a quarterly dividend of $0.115 on May 31.

Global Payments (GPN) yields 0.17% annually and will pay a quarterly dividend of $0.02 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: CVX , DUK , IVZ , UTX , V

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