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X Factor: 5 Stocks Reaching Their Ex-Dividend Date on June 6

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Reynolds American, PPL Corporation, and Ensco are on the list.

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Many stocks will reach their ex-dividend date next Thursday 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. The company determines on the record date, which usually occurs two days after the ex-dividend date, which shareholders qualify for the dividend. Shareholders listed as holders of record after the record date then receive their dividend on the date of payment established by the company. Those purchasing right before the record 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 stocks that schedule June 6 as their ex-dividend date. All annual yields are estimated.

Reynolds American (NYSE:RAI) yields 5.19% annually and has a market cap of $26.66 billion. The US producer of tobacco products will pay a quarterly dividend of $0.63 on July 1, and the quarterly yield of the dividend will be 1.30% based on yesterday's closing price of $48.56. The company has paid a quarterly dividend since the second half of 1999, and each dividend payment has either increased or remained the same from the prior quarter.

PPL Corporation (NYSE:PPL) yields 4.92% annually and has a market cap of $17.71 billion. The energy and utility holding company will pay a quarterly dividend of $0.3675 on July 1, and its quarterly yield will be 1.23% based on yesterday's closing price of $29.90.The company has paid a quarterly dividend since 1987.

Ensco (NYSE:ESV) yields 3.24% annually and has a market cap of $14.35 billion. The global provider of offshore contract drilling services will pay a quarterly dividend of $0.50 on June 21, and the quarterly yield will be 0.81% based on yesterday's closing price of $61.84. The company has paid a quarterly dividend since the end of 1997.

Occidental Petroleum (NYSE:OXY) yields 2.69% annually and has market cap of $76.48 billion. The global oil and gas producer will pay a quarterly dividend of $0.64 on July 15, and the quarterly yield will be 0.68% based on yesterday's closing price of $94.75. The company has paid a quarterly dividend since 1982.

CBS Corporation (NYSE:CBS) yields 0.95% annually and has a market cap $31.19 billion. The global mass media company will pay a quarterly dividend of $0.12 on July 1, and the quarterly yield will be 0.24% based on yesterday's closing price of $50.30. The company has paid a quarterly dividend since 2006.

These companies also have their ex-dividend date on June 6. All annual yields are estimated.

Kronos Worldwide (NYSE:KRO) yields 3.59% annually and will pay a quarterly dividend of $0.15 on June 20.

South Jersey Industries (NYSE:SJI) yields 3% annually and will pay a quarterly dividend of $0.4425 on July 2.

General Cable Company (NYSE:BGC) yields 2.01% quarterly and will pay a quarterly dividend of $0.18 on June 28.

V.F. Corporation (NYSE:VFC) yields 1.89% annually and will pay a quarterly dividend of $0.87 on June 20.

Kansas City Southern (NYSE:KSU) yields 0.77% quarterly and will pay a quarterly dividend of $0.215 on July 3.

Purchase -- and have your broker settle -- before the ex-dividend date to secure the dividend.
Twitter: @ChrisWitrak
No positions in stocks mentioned.
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