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 please check out Everything Investors Need to Know About Ex-Dividend Dates.

1. Ashland Inc.

Ashland Inc. (ASH ) offers a dividend yield of 1.34% based on Monday’s closing price of $116.18 and pays a dividend of $1.56. The stock is down 12.24% from its 52-week high. Dividend.com currently rates Ashland Inc. 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).

2. Homeowners Choice Inc.

Homeowners Choice Inc. (HCI ) offers a dividend yield of 2.77% based on Monday’s closing price of $43.27 and pays a dividend of $1.20. The stock is down 15.88% from its 52-week high. Dividend.com currently rates Homeowners Choice Inc. 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).

3. Questar Corp.

Questar Corp. (STR ) offers a dividend yield of 3.84% based on Monday’s closing price of $21.85 and pays a dividend of $0.84. The stock is down 17.36% from its 52-week high. Dividend.com currently rates Questar Corp. 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).

4. 3M

3M (MMM ) offers a dividend yield of 2.75% based on Monday’s closing price of $149.24 and pays a dividend of $4.10. The stock is down 12.47% from its 52-week high. Dividend.com currently rates 3M as “Neutral”, with a DARS™ rating of 3.4 stars out of 5 stars and a dividend reliability of 4.0 (sector average is 3.8).

5. Cummins Inc.

Cummins Inc. (CMI ) offers a dividend yield of 3.03% based on Monday’s closing price of $128.61 and pays a dividend of $3.90. The stock is down 14.97% from its 52-week high. Dividend.com currently rates Cummins Inc. as “Neutral”, with a DARS™ rating of 3.3 stars out of 5 stars and a dividend reliability of 4.0 (sector average is 3.8).

6. Carnival Corp.

Carnival Corp. (CCL ) offers a dividend yield of 2.27% based on Monday’s closing price of $52.89 and pays a dividend of $1.20. The stock is down 2.15% from its 52-week high. Dividend.com currently rates Carnival Corp. as “Neutral”, with a DARS™ rating of 3.2 stars out of 5 stars and a dividend reliability of 4.0 (sector average is 3.7).