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X Factor: 5 High-Yield Stocks Reaching Their Ex-Dividend Date on August 29

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Baytex Energy Corp., Lexmark International, and Prospect Capital Corporation are on the list.

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MINYANVILLE ORIGINAL Many stocks will reach their ex-dividend date tomorrow, which is significant for investors since 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. Dividends are paid on the dividend record date, usually two business days after the ex-dividend date.

Purchasers must own a stock several days prior to the dividend record date to get the dividend. Those purchasing right before the 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 effect since it can still take up to three business days for transactions to be credited to and settled in an investor's account. (See also: 10 Undervalued Dividend-Paying Stocks With Momentum.)

Below are five high-yield stocks that schedule August 29 as their ex-dividend date. All annualized yields are estimated.

Prospect Capital Corporation (PSEC) yields 10.52% annually and has a market cap of $1.42 billion.The financial services company will pay a monthly dividend of $0.1016 for the month of August on September 21. Its monthly yield will be 0.88% based on yesterday's closing price of $11.58. The company began paying a quarterly dividend in the fourth quarter of 2004 and switched to a monthly dividend in the second quarter of 2010, where it has remained at $0.10.

Prospect Capital has seen solid growth over the past five quarters. For its fourth quarter, which ended on June 30, net income rose to $64.2 million, or $0.29 per share, compared to $30.2 million, or $0.28 per share, for the same quarter last year. However, the company failed to meet analysts earnings expectation of $0.55 per share. Revenue increased 82.1% to $102.7 million from the prior-year quarter. Analysts have raised their earnings estimates for the the company's next quarter from 0.27 per share to $0.29 per share and for the 2013 fiscal year from $1.10 per share to $1.43 per share.

Atlantic Power Corp. (AT) yields 8.04% annually and has a market cap of $1.71 billion. The power generation and infrastructure company will pay a monthly dividend of $0.0958 on September 28. This dividend results in a monthly yield of 0.67% based on yesterday's closing price of $14.25. The company has paid a monthly dividend since July 2010.

The company reported a second-quarter loss of $5.08 million this year compared to a profit of $13.18 million for the prior-year quarter.

TransAlta Corp. (TAC) yields 7.30% annually and has a market cap of $3.67 billion. The company is Canada's largest generator of electricity and renewable energy and will pay a quarterly dividend of $0.29 on October 1. Its quarterly yield will be 1.82% based on yesterday's closing price of $15.90. The company has paid a quarterly dividend since 2001; it has declined from a high of $0.30 in 2011.

The company reported a loss of $22 million, or $0.10 per share, for the second quarter of 2013 compared to a second-quarter profit of $65 million, or $0.29 per share, for the same quarter last year. Its power generating segment has remained strong, but its Energy Trading team and higher maintenance costs hurt the company last quarter.

Lexmark International (LXK) yields 6.17% annually and has a market cap of $1.34 billion. The printing and imaging products company will pay a quarterly dividend of $0.30 on September 14. Its quarterly yield will be 1.54% based on yesterday's closing price of $19.45. The company began paying a dividend in late 2011 and raised it from $0.25 to $0.30 in the previous quarter.

Lexmark has had financial trouble, recently cutting its inkjet business and laying off 1,700 workers, or 13% of its workforce, to save $95 per year. The company plans to focus on its software and imaging business, which is more profitable. For its second quarter, revenue fell 12% from the prior-year quarter to $918.6 million. Its hardware and supplies revenues fell 17% and 14% respectively while its software revenue increased 24% on a year-over-year basis. Net income declined 61.3% from $101.3 million in the prior-year quarter to $39.2 million.

Baytex Energy Corp. (BTE) yields 5.76% annually. The company is a Canadian oil and gas company with a market cap of $5.52 billion and will pay a monthly dividend of $0.22 on September 14. Its monthly yield will be 0.48% based on yesterday's closing price of $46.27. The company has paid a quarterly dividend since 2006.

For its second quarter, net income increased 47% from the prior-year quarter to $157.3 million, or $1.32 per share. Funds from operations fell 10% from the prior-year quarter to $124.7 million, or $1.04 per share.

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

Time Warner (TWX) yields 2.48% annually and will pay a quarterly dividend of $0.26 on September 15.

Allstate (ALL) yields 2.33% annually and will pay a quarterly dividend $0.22 on October 1.

Barrick Gold (ABX) yields 2.12% annually and will pay a quarterly dividend of $0.20 on September 17.

Arch Coal (ACI) yields 1.82% annually and will pay a quarterly dividend of $0.03 on September 14.

Tyson Foods (TSN) yields 1.07% annually and will pay a quarterly dividend of $0.04 on September 14.

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

(See also: 11 High-Quality Dividend-Paying Stocks to Consider Ahead of First Quarter)

Twitter: @ChrisWitrak
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