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X Factor: 5 Stocks Reaching Their Ex-Dividend Date on September 12

By: Minyanville
Posted: 9/5/2013 2:54:00 PM
Referenced Stocks: ARR;KO;MO;MRK;WU

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 September 12 as their ex-dividend date. All annual yields are estimated.

ARMOUR Residential REIT ( ARR ) yields 20.64% annually and has a market cap of $1.51 billion. The real estate investment trust , or REIT, will pay a monthly dividend of $0.07 on September 27, and the monthly yield will be 1.68% based on yesterday's closing price of $4.16. The REIT has paid a monthly dividend since 2010.

Merck ( MRK ) yields 3.62% annually and has a market cap of $138.86 billion. The global provider of various health solutions will pay a quarterly dividend of $0.43 on October 7, and the quarterly yield will be 0.90% based on yesterday's closing price of $47.68. The company has paid a quarterly dividend since 1970.

Altria Group ( MO ) yields 5.60% annually and has a market cap of $68.48 billion. The global manufacturer and seller of cigarettes, smokeless products, and wine will pay a quarterly dividend of $0.48 on October 10, and its quarterly yield will be 1.40% based on yesterday's closing price of $34.17. The company has paid a quarterly dividend since 1989.

Coca-Cola ( KO ) yields 2.93% annually and has a market cap of $169.17 billion. The global beverage company will pay a quarterly dividend of $0.28 on October 1, and its quarterly yield will be 0.73% based on yesterday's closing price of $38.54. The company has paid a quarterly dividend since 1970.

The Western Union Company ( WU ) yields 2.78% annually and has a market cap of $9.93 billion. The global provider of money movement and payment services will pay a quarterly dividend of $0.125 on September 30, and the quarterly yield will be 0.70% based on yesterday's closing price of $17.80. The company has paid a dividend since 2006 and a quarterly dividend since 2010, and each dividend payment has either increased or remained the same from the prior quarter.

These companies also have their ex-dividend date on September 12. All annual yields are estimated.

New Jersey Resources Corporation (NJR) yields 3.82% annually and will pay a quarterly dividend of $0.40 on October 1.

Dr Pepper Snapple Group (DPS) yields 3.40% annually and will pay a quarterly dividend of $0.38 on October 4.

NYSE Euronext (NYX) yields 2.84% annually and will pay a quarterly dividend of $0.30 on September 30.

SPX Corporation (SPW) yields 1.33% annually and will pay a quarterly dividend of $0.25 on October 2.

Belden (BDC) yields 0.34% annually and will pay a quarterly dividend of $0.05 on October 2.

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

Twitter: @ChrisWitrak