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X Factor: 5 Stocks Reaching Their Ex-Dividend Date on February 27

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McDonald's Corporation, Pepsico, and Arch Coal are on the list.

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Many stocks will reach their ex-dividend date next Wednesday, 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 February 27 as their ex-dividend date. All annual yields are estimated.

McDonald's Corporation (NYSE:MCD) yields 3.28% annually and has a market cap of $94.22 billion. The operator of McDonald's restaurants will pay a quarterly dividend of $0.77 on March 15, and its quarterly yield will be 0.82% based on yesterday's closing price of $93.85. The company has paid a dividend since the end of 1985.

Pepsico (NYSE:PEP) yields 3.01% annually and has a market cap of $116.57 billion. The global provider of food and beverages will pay a quarterly dividend of $0.5375 on March 29, and the quarterly yield will be 0.71% based on yesterday's price of $75.50. The company has paid a quarterly dividend since 1977.

Arch Coal (NYSE:ACI) yields 2.04% annually and has a market cap of $1.25 billion. The US producer of steam and metallurgical coal will pay a quarterly dividend of $0.03 on March 15, and its quarterly yield will be 0.51% based on yesterday's closing price of $5.88. The company has paid a quarterly dividend since the end of 1988.

SunTrust Banks (NYSE:STI) yields 0.72% annually and has a market cap of $14.81 billion. The provider of financial services in the US will pay a quarterly dividend of $0.05 on March 15. Its quarterly yield will be 0.18% based on yesterday's closing price of $27.69. The company has paid a quarterly dividend since 1990.

Bank of America (NYSE:BAC) yields 0.33% annually and has a market cap of $131.39 billion. The provider of banking and financial services will pay a quarterly dividend of $0.01 on March 22, and its quarterly yield will be 0.08% based on yesterday's closing price of $12.19. The company has paid a quarterly dividend since 1993.

These companies also have their ex-dividend date on February 27. All annual yields are estimated.

Lockheed Martin Corporation (NYSE:LMT) yields 5.22% annually and will pay a quarterly dividend of $1.15 on March 29.

Agnico-Eagle Mines (NYSE:AEM) yields 2.20% annually and will pay a quarterly dividend of $0.22 on March 15.

Marriott International (NYSE:MAR) yields 1.29% annually and will pay a quarterly dividend of $0.13 on March 29.

Tyson Foods (NYSE:TSN) yields 0.83% annually and will pay a quarterly dividend of $0.05 on March 15.

Loews Corporation (NYSE:L) yields 0.57% annually and will pay a quarterly dividend of $0.0625 on March 15.

Purchase -- and have your broker settle -- before the ex-dividend date to secure the dividend.

Twitter: @ChrisWitrak
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