Tomorrow's Ex-Dividends To Watch: EFC, AAN, JACK - TheStreet

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, November 26, 2014, 61 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0% to 13.9%. All of these stocks can be found on our

stocks going ex-dividend

section of our

dividend calendar

.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Ellington Financial

Owners of

Ellington Financial

(NYSE:

EFC

) shares, as of market close today, will be eligible for a dividend of 77 cents per share. At a price of $22.41 as of 9:50 a.m. ET, the dividend yield is 13.9%.

The average volume for Ellington Financial has been 384,900 shares per day over the past 30 days. Ellington Financial has a market cap of $741.6 million and is part of the real estate industry. Shares are down 1.1% 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.

Ellington Financial LLC, a specialty finance company, acquires and manages mortgage-related assets, including residential mortgage backed securities backed by prime jumbo, Alt-A, manufactured housing and subprime residential mortgage loans, and residential mortgage-backed securities. The company has a P/E ratio of 8.27.

TheStreet Ratings rates

Ellington Financial

as a

hold

. The company's strengths can be seen in multiple areas, such as its expanding profit margins and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share. You can view the full

Ellington Financial Ratings Report

now.

Aaron's

Owners of

Aaron's

(NYSE:

AAN

) shares, as of market close today, will be eligible for a dividend of 2 cents per share. At a price of $28.79 as of 9:51 a.m. ET, the dividend yield is 0.3%.

The average volume for Aaron's has been 671,000 shares per day over the past 30 days. Aaron's has a market cap of $2.0 billion and is part of the diversified services industry. Shares are down 3.1% 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.

Aaron's, Inc. operates as a specialty retailer of consumer electronics, computers, residential furniture, household appliances, and accessories in the United States and Canada. The company operates in four segments: Sales and Lease Ownership, HomeSmart, Franchise, and Manufacturing. The company has a P/E ratio of 26.31.

TheStreet Ratings rates

Aaron's

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity. You can view the full

Aaron's Ratings Report

now.

Jack In The Box

Owners of

Jack In The Box

(NASDAQ:

JACK

) shares, as of market close today, will be eligible for a dividend of 20 cents per share. At a price of $74.47 as of 9:51 a.m. ET, the dividend yield is 1.1%.

The average volume for Jack In The Box has been 541,100 shares per day over the past 30 days. Jack In The Box has a market cap of $2.9 billion and is part of the leisure industry. Shares are up 49% 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.

Jack in the Box Inc., a restaurant company, operates and franchises Jack in the Box quick-service restaurants and Qdoba Mexican Grill fast-casual restaurants in the United States. The company has a P/E ratio of 32.46.

TheStreet Ratings rates

Jack In The Box

as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. You can view the full

Jack In The Box 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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