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X Factor: 5 High-Yield Stocks Reaching Their Ex-Dividend Date on August 31


Avery Dennison, Hancock Holding Company, and Cedar Fair are on the list.

MINYANVILLE ORIGINAL Twenty 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 force 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 high-yield stocks that schedule August 31 as their ex-dividend date. All annual yields are estimated.

Cedar Fair (FUN) yields 4.92% annually and has a market cap of $1.80 billion. The amusement and water park operator will pay a quarterly dividend of $0.40 on September 17. This dividend results in monthly yield of 1.23% based on yesterday's closing price of $32.51. The company has paid a quarterly dividend since 1988.

The company has performed well and beat analysts expectations for its second quarter this year. Cedar Fair's net revenue increased from $284.5 million in the prior-year quarter to $357.6 million. Analysts expected $296.6 million. Net income also increased from $4.3 million, or $0.08 per shares, in the prior-year quarter to $36.3 million, or $0.65 per share. Analysts had originally estimated $0.40 per share. An extra week in the quarter helped improve income relative to the prior-year quarter. When adjusting for this week, total revenues still increased by 6%. For its third quarter this year, analysts on average expect revenue of $591.8 million.

Greenhill & Co. (GHL) yields 4.12% annually and has a market cap of $1.26 billion.The investment bank will pay a quarterly dividend of $0.45 on September 19. Its monthly yield will be 1.03% based on yesterday's closing price of $43.66. The company has paid a quarterly dividend since mid-2004, and the dividend has remained at $0.45 since 2008.

Hurt by the volatility in the financial markets earlier this year, Greenhill reported a revenue of $47.3 million for its second quarter this year compared to $90.8 million in the prior-year quarter. This fell short of estimates of $55 million. Earnings also came in weak at $2.2 million, or $0.07 per share, well below estimates of $0.20 per share. Greenhill's poor performance wasn't unusual, though, as the problems in the financial markets caused by Greece and Spain hurt the income of most investment banks and investment banking divisions.

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