Dividends are an effective income generation tool for both short- and long-term investors. To capitalize on dividends, investors must ensure that they purchase the stock before the ex-dividend date and hold the stock through this period. Payments for dividends usually occur two to six weeks after the Ex-Date. For more information, check out Everything Investors Need to Know About Ex-Dividend Dates.

1. Travelers Co.

Travelers Co. (TRV ) offers a dividend yield of 2.43% based on Thursday’s closing price of $100.21 and pays a dividend of $2.44. The stock is down 9.30% from its 52-week high. Dividend.com currently rates Travelers as “Neutral” with a DARS™ rating of 3.4 stars out of 5 stars and a dividend reliability of 4.0 (sector average is 3.6).

2. Occidental Petroleum

Occidental Petroleum (OXY ) offers a dividend yield of 3.88% based on Thursday’s closing price of $77.30 and pays a dividend of $3.00. The stock is down 26.83% from its 52-week high. Dividend.com currently rates Occidental Petroleum as “Neutral” with a DARS™ rating of 3.4 stars out of 5 stars and a dividend reliability of 4.0 (sector average is 3.7).

3. Reynolds American

Reynolds American (RAI ) offers a dividend yield of 3.62% based on Thursday’s closing price of $74.09 and pays a dividend of $2.68. The stock is down 4.62% from its 52-week high. Dividend.com currently rates Reynolds American as “Neutral” with a DARS™ rating of 3.4 stars out of 5 stars and a dividend reliability of 4.5 (sector average is 3.9).

4. CME Group

CME Group (CME ) offers a dividend yield of 2.12% based on Thursday’s closing price of $94.24 and pays a dividend of $2.00. The stock is down 6.33% from its 52-week high. Dividend.com currently rates CME Group as “Neutral” with a DARS™ rating of 3.4 stars out of 5 stars and a dividend reliability of 4.0 (sector average is 3.7).

5. Anadarko Petroleum

Anadarko Petroleum Liquid error: internal offers a dividend yield of 1.29% based on Thursday’s closing price of $83.40 and pays a dividend of $1.08. The stock is down 26.53% from its 52-week high. Dividend.com currently rates Anadarko Petroleum as “Neutral” with a DARS™ rating of 3.3 stars out of 5 stars and a dividend reliability of 4.0 (sector average is 3.7).

6. Hewlett Packard

Hewlett Packard (HPQ ) offers a dividend yield of 2.11% based on Thursday’s closing price of $33.30 and pays a dividend of 70 cents. The stock is down 18.98% from its 52-week high. Dividend.com currently rates Hewlett Packard as “Neutral” with a DARS™ rating of 3.3 stars out of 5 stars and a dividend reliability of 3.5 (sector average is 3.6).

7. General Motors

General Motors (GM ) offers a dividend yield of 4.05% based on Thursday’s closing price of $35.54 and pays a dividend of $1.44. The stock is down 8.87% from its 52-week high. Dividend.com currently rates General Motors as a “Neutral” with a DARS™ rating of 3.0 stars out of 5 stars and a dividend reliability of 3.0 (sector average is 3.9).