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X Factor: 5 Stocks Reaching Their Ex-Dividend Date on May 28

Posted
5/21/2013 11:40:00 AM
By: Minyanville
Referenced Stocks:EXPE;GS;GXP;HOG;LPS

Eleven stocks will reach their ex-dividend date next Tuesday, 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 28 as their ex-dividend date. All annual yields are estimated.

Great Plains Energy ( GXP ) yields 3.58% annually and has a market cap of $3.70 billion. The generator and distributor of electricity will pay a quarterly dividend of $0.2175 on June 20, and the quarterly yield will be 0.89% based on yesterday's closing price of $24.23. The company has paid a quarterly dividend since the end of 1987.

Harley-Davidson ( HOG ) yields 1.42% annually and has a market cap of $13.22 billion. The motorcycle manufacturer will pay a quarterly dividend of $0.21 on June 14, and the quarterly yield will be 0.35% based on yesterday's closing price of $59.46. The company has paid a quarterly dividend since the end of 1993.

Lender Processing Services ( LPS ) yields 1.34% annually and has a market cap of $2.53 billion. The data services provider to the mortgage industry will pay a quarterly dividend of $0.10 on June 13, and its quarterly yield will be 0.34% based on yesterday's closing price of $29.71. The company has paid a quarterly dividend since the second half of 2008.

Goldman Sachs ( GS ) yields 1.25% annually and has a market cap of $77.10 billion. The global investment bank will pay a quarterly dividend of $0.50 on June 27, and the quarterly yield will be 0.31% based on yesterday's closing price of $158.90. The company has paid a quarterly dividend since the second half of 1999, and each dividend payment has either increased or remained the same from the prior quarter.

Expedia ( EXPE ) yields 0.90% annually and has a market cap of $7.84 billion. The global online travel company will pay a quarterly dividend of $0.13 on June 19, and the quarterly yield of the dividend will be 0.22% based on yesterday's closing price of $58. The company has paid a quarterly dividend since 2010.

These companies also have their ex-dividend date on May 28. All annual yields are estimated.

Six Flags Entertainment (SIX) yields 4.50% annually and will pay a quarterly dividend of $0.90 on June 10.

CNOOC (CEO) yields 4% annually and will pay a semi-annual dividend of $3.7097 on July 11.

Cott Corporation (COT) yields 2.75% quarterly and will pay a quarterly dividend of $0.06 on June 12.

Delhaize Group (DEG) yields 2.10% annually and will pay an annual dividend of $1.3461, but Delhaize has not announced the pay date yet.

La-Z-Boy (LZB) yields 0.85% quarterly and will pay a quarterly dividend of $0.04 on June 10.

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

Twitter: @ChrisWitrak