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X Factor: 5 High-Yield Stocks Reaching Their Ex-Dividend Date on September 6


PPL Corporation, Reynolds American, and Pepco Holdings are on the list.

MINYANVILLE ORIGINAL Many stocks will reach their ex-dividend date tomorrow 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. 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 September 6 as their ex-dividend date. All annual yields are estimated.

Enerplus Corporation (ERF) yields 6.84% annually and has a market cap of $3.12 billion. The North American oil and gas producer will pay a monthly dividend of $0.09 on September 20. Its monthly yield will be 0.57% based on yesterday's closing price of $15.80. The company began paying a monthly dividend at the end of 2000. The sharp drop in natural gas prices over the past year have hurt the company's cash flow and forced Enerplus to cut its monthly dividend in half this year from $0.18 to $0.09.

Lower commodity prices have hurt Enerplus, and this was reflected in the company's second quarter earnings. Net income declined from $271.39 million, or $1.52 per share in the prior-year quarter, to $101.57 million, or $0.52 per share, in the recent quarter.

Regal Entertainment Group (RGC) yields 6.03% annually and has a market cap of $2.15 billion. The theater operator will pay a quarterly dividend of $0.21 on September 18. Its quarterly yield will be 1.51% based on yesterday's closing price of $13.92 The company has been paying a quarterly dividend since the end of 2002.

Weaker movie attendance has hurt Regal Entertainment. Total movie revenue was down 1.2% in the second quarter. Regal's revenue for its second quarter dropped from $753.3 million in the prior-year quarter to $723.3 million in the recent quarter.
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