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X Factor: 5 High-Yield Stocks Reaching Their Ex-Dividend Date on September 26


Windstream Corporation, Capstead Mortgage Corp., and Hatteras Financial Corp. 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 effectsince 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 high-yield stocks that schedule September 26 as their ex-dividend date. All annual yields are estimated.

Hatteras Financial Corporation (NYSE:HTS) yields 10.83% annually. The externally-managed mortgage real estate investment trust, or REIT, has a market cap of $2.90 billion and will pay a quarterly dividend of $0.80 on October 26. Its quarterly yield will be 2.71% based on yesterday's closing price of $29.55. The company has paid a quarterly dividend since 2008, and the dividend has declined from its high of $1.20 in the first quarter of 2010.

Capstead Mortgage Corporation (NYSE:CMO) yields 9.88% annually and has a market cap of $1.44 billion. The self-managed real estate investment trust will pay a quarterly dividend of $0.36 on October 19. This dividend results in a quarterly yield of 2.47% based on yesterday's closing price of $14.58. The REIT has paid a quarterly dividend since the end of 1987, except for 1998 when it paid a dividend only twice. The dividend is down from a recent high of $0.58 in 2009.
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