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X Factor: 5 High-Yield Stocks Reaching Their Ex-Dividend Date on September 12

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Valley National Bancorp, Redwood Trust, and Ship Finance International 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 force 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 five high-yield stocks that schedule September 12 as their ex-dividend date. All annual yields are estimated.

Ship Finance International (SFL) yields 9.04% annually and has a market cap of $1.37 billion. The vessel owning company will pay a quarterly dividend of $0.39 on September 28. Its quarterly yield will be 2.26% based on yesterday's closing price of $17.26. The company has paid a quarterly dividend since the third quarter of 2004.

Redwood Trust (RWT) yields 6.75% annually. The real estate investment trust, or REIT, has a market cap of $1.17 billion and will pay a quarterly dividend of $0.25 on September 28. Its quarterly yield will be 1.69% based on last Friday's closing price of $14.81. The company has paid a dividend since 1996. The dividend dropped from a high of $0.75 in 2008 to the current amount of $0.25.

Valley National Bancorp (VLY) yields 6.33% annually and has a market cap of $2.03 billion. The holding company for Valley National Bank will pay a quarterly dividend of $0.1625 on October 1. Its quarterly yield will be 1.58% based on yesterday's closing price of $10.27. The company has paid a quarterly dividend since the last quarter of 1991. The dividend is slightly off its high of $0.17 from last quarter.

One Beacon Insurance Group (OB) yields 6.46% annually and has a market cap of $1.24 billion. The insurance company will pay a quarterly dividend of $0.21 on September 28. This dividend results in a quarterly yield of 1.61% based on yesterday's closing price of $13.01. The company has been paying a quarterly dividend since 2007, except for 2009 when no dividend was paid. The company has paid a steady quarterly dividend since 2007.

Mercury General Corporation (MCY) yields 6.30% annually and has a market cap of $2.15 billion. The insurance company will pay a quarterly dividend of $0.61 on September 28. Its quarterly yield will be 1.56% based on yesterday's closing price of $39.09. The company has paid a dividend since 1990, and the company has paid a quarterly dividend since 1992. Each quarter, the dividend has only increased in value or remained the same.



These companies also have their ex-dividend date on September 12. All annual yields are estimated.

Altria Group (MO) yields 5.11% annually and will pay a quarterly dividend of $0.44 on October 10.

NYSE Euronext (NYX) yields 4.63% annually and will pay a quarterly dividend of $0.30 on September 28.

Prologis (PLD) yields 3.13% annually and will pay a quarterly dividend of $0.28 on September 28.

Viacom (VIAB) yields 2.17% annually and will pay a quarterly dividend of $0.275 on October 1.

UnitedHealth Group (UNH) yields 1.58% annually and will pay a quarterly dividend of $0.2125 on September 21.

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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