5 Ex-Dividend Stocks With Buy Ratings

NEW YORK ( TheStreet) -- The following stocks go ex-dividend Tuesday, meaning an investor must purchase the shares Monday to qualify for the next dividend payment: Home Depot ( HD), Kronos Worldwide ( KRO), Gardner Denver ( GDI), MDU Resources Group ( MDU) and TAL International Group ( TAL).

Each of the companies received a buy rating from TheStreet Ratings.

Home Depot

The No. 1 home-improvement retailer reported fourth-quarter earnings last month of $774 million, or 51 cents a share, up from year-ago earnings of $587 million, or 36 cents.

"Shorter term, the housing trade is playing out again on renewed hopes of a sustained rebound and P/E multiples have expanded," Jefferies analysts wrote in a Feb. 22 report. "At this level, housing data points will remain important, particularly as we get past easy weather comparison months like January and into the heart of the spring/summer season. We are primarily focused on housing inventory and price stabilization -- this could be at risk if more supply increases now that a mortgage settlement has been reached with the banks."

Forward Annual Dividend Yield: 2.4%

Rated "A+ (Buy)" by TheStreet Ratings: The company's fourth-quarter gross profit margin remained about the same as last year.

Home Depot has very weak liquidity. Its Quick Ratio is 0.34, which demonstrates a lack of ability to meet its short-term cash needs.

In the fourth quarter, stockholders' net worth decreased 5.24% from the prior year.

TheStreet Ratings' price target is $59.50. The stock closed Friday at $47.41 and has risen 12.77% year to date.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Kronos Worldwide

The titanium dioxide pigment company is scheduled to report fourth-quarter results on March 6. Analysts, on average, anticipate earnings of 50 cents a share on revenue of $434.58 million.

"With paint companies reducing their TiO2 usage through a multitude of actions, feedstock ore costs likely to peak in 2012/13 as new projects come on-stream and minimal TiO2 capacity being added, we believe the TiO2 cycle is entering a new phase ofstabilization with earnings likely to hold steady at current levels through 2015," Deutsche Bank analysts wrote in a Feb. 22 report.

Forward Annual Dividend Yield: 2.6%

Rated "B (Buy)" by TheStreet Ratings: The company's third-quarter gross profit margin increased from the previous year.

Kronos Worldwide has strong liquidity. Its Quick Ratio is 1.67, which shows the company can meet its short-term cash needs.

In the third quarter, stockholders' net worth increased 118.26% from the prior year.

TheStreet Ratings' price target is $25.79. The stock closed Friday at $23.62 and has risen 30.93% year to date.


Gardner Denver

The industrial machinery maker reported in February fourth-quarter earnings of $77.4 million, or $1.53 a share, up from year-ago earnings of $57.1 million, or $1.09.

"While management has done a great job in squeezing out costs, our estimates capture this (we assume the company can hit its 14% by '14 IPG margin target)," Credit Suisse analysts wrote in a Feb. 13 report. "We est. GDI's overall op margins at 18% in FY12, the highest in the EE/MI sector. Our $21m of productivity gains in IPG over 2012-2014 embed much of the savings from what we estimate could be a 25% cut in IPG Europe headcount."

Forward Annual Dividend Yield: 0.3%

Rated "A- (Buy)" by TheStreet Ratings: The company's fourth-quarter gross profit margin decreased from the previous year.

Gardner Denver has average liquidity. Its Quick Ratio is 1.25, which shows the company can technically meet its short-term cash needs.

TheStreet Ratings' price target is $89.39. The stock closed Friday at $67.98 and has fallen 11.78% year to date.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

MDU Resources Group

"Management expects 2012 natural gas production to be down 12%-16% due in part to the deferral of certain development activities because of low natural gas prices, as well as the anticipated divestiture of certain natural gas properties, including coalbed methane properties in MT and WY," D.A. Davidson analysts wrote in a Feb. 3 report.

Forward Annual Dividend Yield: 3.1%

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

TheStreet Ratings' price target is $25.25. The stock closed Friday at $21.69 and has risen 1.07% year to date.


TAL International Group

The intermodal containers company reported in February fourth-uarter adjusted earnings of $1.02 a share, up from 76 cents a year earlier and higher than analysts' estimates of 99 cents.

"Management guided for a weaker 1Q12 due to seasonality as well as expected continued pressure on container gains due to the normalization of sales prices (recent price appears to be between $2.2K-$2.4K)," Jefferies analysts wrote in a Feb. 15 report. "Despite the implications of moderating container prices, modest trade growth expectations and the capital-constrained nature of most of the container liners keep management optimistic for 2012."

Forward Annual Dividend Yield: 6.1%

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

In the fourth quarter, stockholders' net worth increased 31.36% from the prior year.

TheStreet Ratings' price target is $45.30. The stock closed Friday at $36.47 and the stock has risen 26.68% year to date.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

-- Written by Alexandra Zendrian

>To contact the writer of this article, click here: Alexandra Zendrian

>To submit a news tip, send an email to: tips@thestreet.com.

>To follow the writer on Twitter, go to Alexandra Zendrian.

More from Stocks

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

At End of May, Investors Signalling They May Stay Away

At End of May, Investors Signalling They May Stay Away

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever