3 Ex-Dividend Stocks With Buy Ratings

NEW YORK ( TheStreet) -- The following stocks go ex-dividend Thursday, meaning an investor must purchase the shares Wednesday to qualify for the next dividend payment: Henry (Jack) & Associates ( JKHY), Microchip Technology ( MCHP) and Solera Holdings ( SLH).

The three stocks receive buy ratings from TheStreet Ratings.

See the complete Dividend Calendar.

Microchip Technology

The semiconductor products maker reported earlier this month third-quarter earnings of $77.5 million, or 38 cents a share, a fall from year-ago earnings of $100.8 million, or 52 cents.

"The company guided for seasonal growth as it expects to see the beginning of the upturn," JPMorgan analysts wrote in a Feb. 3 report. "However, we continue to believe Microchip is expensive at its current valuation of 18X our C13 EPS estimate of $2.15, a roughly 15% premium to our large cap semiconductor average of 15.5X C13 EPS. As a result, we remain Neutral on MCHP due to valuation."

Forward Annual Dividend Yield: 3.8%

Rated "A (Buy)" by TheStreet Ratings: The company's third-quarter gross profit margin was basically the same as a year ago.

Microchip Technology is extremely liquid. Its Quick Ratio is 5.84, which shows it can meet its short-term cash needs.

In the third quarter, stockholders' net worth increased 17.65% from the prior year.

TheStreet Ratings' price target is $43.12. The stock closed Monday at $36.94 and has risen 0.05%.

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Jack Henry & Associates

The integrated computer systems company reported last month fiscal second-quarter earnings of $38.5 million, or 44 cents a share, an increase from year-ago earnings of $36 million, or 42 cents.

"We are encouraged by JKHY's continued solid organic revenue growth, its growing backlog, and the continued mix shift toward outsourcing and payments," Oppenheimer analysts wrote in a Feb. 1 report. "JKHY trades at a modest premium to peers on an EBITDA basis, although the group trades at cyclically depressed levels, in our view."

Forward Annual Dividend Yield: 1.3%

Rated "A+ (Buy)" by TheStreet Ratings: The company's second-quarter gross profit margin was basically the same as a year ago.

Jack Henry & Associates has weak liquidity. Its Quick Ratio is 0.83, which demonstrates a lack of ability to meet its short-term cash needs.

In the second quarter, stockholders' net worth increased 15.29% from the prior year.

TheStreet Ratings' price target is $42.99. The stock closed Monday at $34.90 and has increased 3.84% year to date.


Solera Holdings

The car insurance claims software company reported last week fiscal second-quarter earnings of $28.2 million, or 39 cents a share, which fell from year-ago earnings of $30.9 million, or 44 cents.

"This was the first time Solera reported a relationship with a local insurance company," JPMorgan analysts wrote in a Feb. 8 report. " The key local targets have about 70% market share. Solera is training the customers on its software. It's early days, but we think it's an important development. Training could take less than 1 year assuming the build-out continues. China represents the largest global car park, with accident frequency 6x greater than the US market."

Forward Annual Dividend Yield: 0.8%

Rated "B (Buy)" by TheStreet Ratings: The company's second-quarter gross profit margin was about the same as the prior year.

Solera Holdings is extremely liquid. Its Quick Ratio is 2.83, which shows the company can meet its short-term cash needs.

In the second quarter, stockholders' net worth increased 21.39% from the previous year.

TheStreet Ratings' price target is $55.97. The stock closed Monday at $49.32 and has risen 10.73% year to date.

Find out which stocks have the highest dividend yields.

-- Written by Alexandra Zendrian

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