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Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, your have to be extremely careful.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. Here are a few examples of the stocks going ex dividend during the next week or two, showing the stock symbol, the ex-dividend date and the yield.

The Empire District Electric Company (NYSE:EDE) market cap: $794.8M ex div date: 8/30/2010 yield: 6.5%

First National Bank Alaska (OTCQB:FBAK) market cap: $634.2M ex div date: 8/30/2010 yield: 5.2%

Kellogg Company (NYSE:K) market cap: $19.0B ex div date: 8/30/2010 yield: 3.2%

Lockheed Martin Corporation (NYSE:LMT) market cap: $26.3B ex div date: 8/30/2010 yield: 3.5%

McDonald's Corporation (NYSE:MCD) market cap: $76.7B ex div date: 8/30/2010 yield: 3.1%

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: None.

Source: Six Stocks Going Ex Dividend the Fifth Week of August