Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Tomorrow, Wednesday, June 4, 2014, 4:00 AM ET, 47 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.1% to 8.1%. All of these stocks can be found on our

stocks going ex-dividend

section of our

dividend calendar

.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Nuveen California AMT-Free Municipal Income

Owners of

Nuveen California AMT-Free Municipal Income

(NYSE:

NKX

) shares as of market close today will be eligible for a dividend of 14 cents per share. At a price of $13.88 as of 9:30 a.m. ET, the dividend yield is 6.1%.

The average volume for Nuveen California AMT-Free Municipal Income has been 63,500 shares per day over the past 30 days. Nuveen California AMT-Free Municipal Income has a market cap of $579.5 million and is part of the financial services industry. Shares are up 14% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

The company has a P/E ratio of 14.58.

Knight Transportation

Owners of

Knight Transportation

(NYSE:

KNX

) shares as of market close today will be eligible for a dividend of 6 cents per share. At a price of $24.02 as of 9:36 a.m. ET, the dividend yield is 1%.

The average volume for Knight Transportation has been 721,200 shares per day over the past 30 days. Knight Transportation has a market cap of $2.0 billion and is part of the transportation industry. Shares are up 32.9% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Knight Transportation, Inc., together with its subsidiaries, operates as a short to medium-haul truckload carrier of general commodities primarily in the United States. The company operates in two segments, Asset-Based and Non-Asset-Based. The company has a P/E ratio of 27.08.

TheStreet Ratings rates

Knight Transportation

as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. You can view the full

Knight Transportation Ratings Report

now.

Arthur J Gallagher

Owners of

Arthur J Gallagher

(NYSE:

AJG

) shares as of market close today will be eligible for a dividend of 36 cents per share. At a price of $46.06 as of 9:35 a.m. ET, the dividend yield is 3.1%.

The average volume for Arthur J Gallagher has been 1.3 million shares per day over the past 30 days. Arthur J Gallagher has a market cap of $7.2 billion and is part of the insurance industry. Shares are down 1.6% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Arthur J. Gallagher & Co. and its subsidiaries provide insurance brokerage and risk management services to various commercial, industrial, institutional, and governmental organizations. It operates in two segments, Brokerage and Risk Management. The company has a P/E ratio of 21.82.

TheStreet Ratings rates

Arthur J Gallagher

as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, good cash flow from operations, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. You can view the full

Arthur J Gallagher Ratings Report

now.

More About Dividends:

One benefit of owning a stock is the potential that you will be paid a dividend. The distribution of dividend payments is another way for a company to share its profit with you. A dividend means that the company pays you a certain amount of money, either as a one-time payment or more commonly on a quarterly basis, for each share of stock you own.

Many times, dividends come at the expense of greater price appreciation, because the company is distributing its profits to shareholders rather than reinvesting the profits back into the growth of the company. However, companies that pay dividends can be very attractive to investors when they offer a steady stream of income. There are some important terms and dates an investor should be familiar with before purchasing any dividend-paying companies. Let's work through an example to help better explain some of these terms:

On March 1, ABC Widget Company has decided that because it holds excess cash and lacks investment opportunities, it would like to reward shareholders with a regular quarterly dividend payment. The date for this particular announcement is known as the declaration date. It is on this date that the company announces the specific dividend payment along with the holder-of-record date (aka record date) and the payment date. The company announces that a dividend payment of 25 cents per share will be payable March 31, 2012 (the payment date) to all shareholders of record at the close of business on March 16, 2012 (holder-of-record date). What does this all mean? Well the short story is that the company looks at its records on March 16 and anyone listed on the books as an owner of ABC Widget company will be eligible for the dividend payment (on March 31).

The one other important term to remember is the ex-dividend date. The ex-dividend date (typically two trading days before the holder-of-record date for U.S. securities) is the day in which a company begins trading without the dividend. In order to have a claim on a dividend, shares must be purchased no later than the last business day before the ex-dividend date. A company trading ex-dividend will have the upcoming dividend subtracted from the share price at the start of the trading day. Many times, the price of a stock will increase in anticipation of the upcoming dividend as the ex-dividend date approaches, yet will fall back by the amount of the dividend on the ex-dividend date.

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