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X Factor: 5 Stocks Reaching Their Ex-Dividend Date on September 13

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H. J. Heinz, Merck, and Packaging Corp. of America are on the list.

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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.

Below are the five stocks with highest dividend yields and whose companies have a market cap over $1 billion that schedule September 13 as their ex-dividend date. All annual yields are estimated.

Just Energy Group (JE) yields 10.98% annually and has a market cap of $1.57 billion. The electricity and natural gas provider will pay a monthly dividend of $0.103 on September 30. Its monthly yield will be 0.91% based on yesterday's closing price of $11.29. The company started paying a monthly dividend this year.

DTE Energy (DTE) yields 4.16% annually and has a market cap of $10.24 billion. The Michigan-based electric and natural gas utility will pay a quarterly dividend of $0.62 on October 15. This dividend results in a quarterly yield of 1.04% based on yesterday's closing price of $59.61. The company has paid a quarterly dividend since 1970, and the dividend has increased or remained the same each quarter.

H. J. Heinz (HNZ) yields 3.67% annually. The food products company has a market cap of $17.96 billion and will pay a quarterly dividend of $0.515 on October 10. Its quarterly yield will be 0.92% based on yesterday's closing price of $56.09. The company has paid a quarterly dividend since the last quarter of 1984. The dividend that will be paid in October and the dividend paid for the second quarter of this year will be the highest dividends every distributed by the company.

Merck (MRK) yields 3.79% annually and has a market cap of $135.01 billion. The pharmaceutical products and medicines producer will pay a quarterly dividend of $0.42 on October 5. Its quarterly yield will be 0.95% based on yesterday's closing price of $44.33. The company has paid a quarterly dividend since 1970. The dividend was increased for the first time in almost seven years to $0.42 at the end of 2011. The dividend has never decreased and has only increased or has remained the same each quarter.

Packaging Corp. of America (PKG) yields 3.10% annually and has a market cap of $3.10 billion. The containerboard and corrugated products company will pay a quarterly dividend of $0.25 on October 15. Its quarterly yield will be 0.77% based on yesterday's closing price of $32.36. The company has paid a quarterly dividend since the end of 2003.



These companies also have their ex-dividend date on September 13. All annual yields are estimated.

Dr Pepper Snapple Group (DPS) yields 3.03% annually and will pay a quarterly dividend of $0.34 on October 5.

Domtar Corporation (UFS) yields 2.35% annually and will pay a quarterly dividend of $0.45 on October 15.

Taubman Center (TCO) yields 2.32% annually and will pay a quarterly dividend of $0.4625 on September 28.

NewMarket Corporation (NEU) yields 1.18% annually and will pay a quarterly dividend of $0.75 on October 1.

Hess Corporation (HES) yields 0.73% annually and will pay a quarterly dividend of $0.10 on September 28.

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
No positions in stocks mentioned.
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