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X Factor: 5 Stocks Reaching Their Ex-Dividend Date on May 16

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Teva Pharmaceutical, Honeywell, and Hanesbrands 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 May 16 as their ex-dividend date. All annual yields are estimated.

Teva Pharmaceutical Industries Limited (NYSE:TEVA) yields 2.84% annually and has a market cap of $32.73 billion. The global pharmaceutical company will pay a quarterly dividend of $0.272 on June 3, and the quarterly yield will be 0.71% based on yesterday's closing price of $38.42. The company has paid a quarterly dividend since 1990.

Honeywell International (NYSE:HON) yields 2.12% annually and has a market cap of $60.96 billion. The global technology and manufacturing company will pay a quarterly dividend of $0.41 on June 10, and the quarterly yield of the dividend will be 0.53% based on yesterday's closing price of $77.48. The company has paid a quarterly dividend since 1970.

Hanesbrands (NYSE:HBI) yields 1.59% annually and has a market cap of $4.97 billion. The apparel company will pay a quarterly dividend of $0.20 on June 3, and the quarterly yield will be 0.40% based on yesterday's closing price of $50.45. The company began paying a dividend this year.

Bunge (NYSE:BG) yields 1.49% annually and has a market cap of $10.74 billion. The global agriculture and food business will pay a quarterly dividend of $0.27 on June 3, and its quarterly yield will be 0.37% based on yesterday's closing price of $72.60. The company has paid a quarterly dividend since 2002.

Moody's Corporation (NYSE:MCO) yields 1.25% annually and has a market cap of $14.23 billion. The global provider of credit ratings will pay a quarterly dividend of $0.20 on June 10, and the quarterly yield will be 0.31% based on yesterday's closing price of $63.84. The company has paid a quarterly dividend since the end of 2000, and each dividend payment has either increased or remained the same from the prior quarter.

These companies also have their ex-dividend date on May 16. All annual yields are estimated.

Giant Interactive Group (NYSE:GA) yields 5.18% annually and will pay a semi-annual dividend of $0.41, but the pay date has not been announced yet.

Atmos Energy Corporation (NYSE:ATO) yields 3.14% annually and will pay a quarterly dividend of $0.35 on June 3.

PartnerRe (NYSE:PRE) yields 2.74% annually and will pay a quarterly dividend of $0.64 on May 31.

Deluxe Corporation (NYSE:DLX) yields 2.60% annually and will pay a quarterly dividend of $0.25 on June 3.

Ryder System (NYSE:R) yields 2.03% annually and will pay a quarterly dividend of $0.31 on June 21.

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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