X Factor: 5 Stocks Reaching Their Ex-Dividend Date on May 29

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

Barrick Gold Corporation ( ABX ) yields 4.04% annually and has a market cap of $20.20 billion. The miner of gold and copper will pay a quarterly dividend of $0.20 on June 17, and the quarterly yield will be 1.03% based on yesterday's closing price of $19.37. The company has paid a dividend since the end of 1987 and a quarterly dividend since 2010.

Corning ( GLW ) yields 2.47% annually and has a market cap of $23.81 billion. The producer of specialty glass and ceramics will pay a quarterly dividend of $0.10 on June 28, and the quarterly yield of the dividend will be 0.52% based on yesterday's closing price of $19.19. The company has paid a quarterly dividend since 1982.

Arch Coal ( ACI ) yields 2.11% annually and has a market cap of $1.19 billion. The US coal miner will pay a quarterly dividend of $0.03 on June 14, and the quarterly yield will be 0.54% based on yesterday's closing price of $5.55. The company has paid a quarterly dividend since the end of 1988.

Time Warner ( TWX ) yields 1.89% annually and has a market cap of $56.52 billion. The global media and entertainment company will pay a quarterly dividend of $0.2875 on June 15, and its quarterly yield will be 0.48% based on yesterday's closing price of $60.47. The company has paid a quarterly dividend since the middle of 2005, and each dividend payment has either increased or remained the same from the prior quarter.

SunTrust Banks ( STI ) yields 1.23% annually and has a market cap of $17.47 billion. The holding company for SunTrust Bank will pay a quarterly dividend of $0.10 on June 14, and the quarterly yield will be 0.31% based on yesterday's closing price of $32.15. The company has paid a quarterly dividend since 1988.

These companies also have their ex-dividend date on May 29. All annual yields are estimated.

Meredith Corporation (MDP) yields 3.86% quarterly and will pay a quarterly dividend of $0.4075 on June 14.

Lexmark International (LXK) yields 3.80% annually and will pay a quarterly dividend of $0.30 on June 14.

Bank of Hawaii (BOH) yields 3.51% annually and will pay a quarterly dividend of $0.45 on June 14.

Union Pacific Corporation (UNP) yields 1.72% quarterly and will pay a quarterly dividend of $0.69 on July 1.

Tyson Foods (TSN) yields 0.79% annually and will pay a quarterly dividend of $0.05 on June 14.

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: ABX , ACI , GLW , STI , TWX

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