8 Ex-Dividend Stocks With Buy Ratings (Update 1)

Updated to include information about Wal-Mart, and updated stock prices.

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: CBS ( CBS), Cigna ( CI), FedEx ( FDX), Ingersoll-Rand ( IR), Magna International ( MGA), Pepco Holdings ( POM), Silgan Holdings ( SLGN) and Wal-Mart ( WMT).

Each of the stocks was rated buy at TheStreet Ratings.

CBS

The media company reported last month fourth-quarter earnings of $370 million, or 57 cents a share, up from year-ago earnings of $283 million, or 42 cents.

"International programming continues to show strength," Wells Fargo analysts wrote in a Feb. 29 report. "Such strength is coming from CBS's ability to sell to more markets, as well as increasing competition in these markets (via distribution). There are a variety of long-term output deals, which helps against potential economic issues."

Forward Annual Dividend Yield: 1.3%

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

CBS has weak liquidity. Its Quick Ratio is 1.00, which demonstrates a lack of ability to meet its short-term cash needs.

In the fourth quarter, stockholders' net worth was basically the same as the prior year.

TheStreet Ratings' price target is $39.83. The stock is trading midday Wednesday at $29.71 and has risen 9.47% year to date.

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Cigna

The health services company is considering selling its pharmacy-benefits division, according to Bloomberg.

"Given the favorable commentary and this quarter's moving parts, the Q4 slightmiss does not appear alarming," Oppenheimer analysts wrote in a Feb. 3 report. "Furthermore, the outlook actually looks solid, and management reiterated its three- to five-year expectation of 10-13% EPS growth and mid-single digit top-line growth. As a result, we reiterate our Outperform rating and would be buyers on weakness."

Forward Annual Dividend Yield: 0.1%

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

In the fourth quarter, stockholders' net worth increased 25.56% from the prior year.

TheStreet Ratings' price target is $54.73. The stock is trading at $43.65 midday Wednesday has risen 3.93% year to date.


FedEx

The transportation company is scheduled to report third-quarter earnings on March 22. Analysts, on average, anticipate profit of $1.35 a share on revenue of $10.62 billion.

"FDX December volumes were up 0.5% systemwide with Domestic down 0.9% but with each international segment showing growth ranging from 1.23.8% growth," Wells Fargo analysts wrote in a Feb. 10 report. "The 9% sequential growth was below the 13% and 14% sequential growth seen in 2010 and 2009. On a quarterly basis the 6% sequential growth compared to 4% and 11% in the prior two years."

Forward Annual Dividend Yield: 0.6%

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

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

In the second quarter, stockholders' net worth increased 9.31% from the prior year.

TheStreet Ratings' price target is $105.24. The stock is trading midday Wednesday at $89.73 and has risen 7.45% year to date.

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Ingersoll-Rand

The industrial products maker reported last month fourth-quarter earnings of $242.2 million, or 76 cents a share, up from year-ago earnings of $212.1 million, or 62 cents.

"We reiterate Buy on IR, and highlight it as an attractively valued-stock with someof the highest leverage to North American recovery in our coverage, particularly tonon-residential construction spending," Bank of America Merrill Lynch analysts wrote in a Feb. 9 report.

Forward Annual Dividend Yield: 1.6%

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

Ingersoll-Rand has weak liquidity. Its Quick Ratio is 0.80, which demonstrates a lack of ability to meet its short-term cash needs.

In the fourth quarter, stockholders' net worth decreased 13.19% from the prior year.

TheStreet Ratings' price target is $46.35. The stock is trading midday Wednesday at $38.13 and has risen 25.14% year to date.


Magna International

The car parts supplier reported last month fourth-quarter earnings of $312 million, or $1.32 a share, up from year-ago earnings of $219 million, or 89 cents.

"After the 30% rally in the US auto parts sector since the beginning of the year, we reiterate our Hold rating but increase our target price to $44 (from $32)," Societe General analysts wrote in a Feb. 29 report. The analysts added, "Profitability of the group's European operations is a key company-specific swing factor."

Forward Annual Dividend Yield: 2.3%

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

Magna International has average liquidity. Its Quick Ratio is 1.00, which shows the company can technically meet its short-term cash needs.

In the fourth quarter, stockholders' net worth increased 1.45% from the prior year.

TheStreet Ratings' price target is $56.44. The stock is trading at $45.83 midday Wednesday and has risen 37.59% year to date.

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Pepco Holdings

The electricity company reported last month fourth-quarter earnings of $23 million, or 10 cents a share, up from year-ago earnings of $14 million, or 6 cents.

"While 2012 guidance was a little disappointing we still like the POMinvestment thesis from the perspective that we capture a rich dividend yield and one of the best opportunities in the group to re-rate earned ROEs from a big under-earning position through either regular rate cases or ideally adoption of forward looking trackers," Credit Suisse analysts wrote in a Feb. 27 report. "Resolution of 5 rate cases over the next 6 months will set an important baseline for '13 and beyond."

Forward Annual Dividend Yield: 5.5%

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

Pepco Holdings has weak liquidity. Its Quick Ratio is 0.56, which demonstrates a lack of ability to meet its short-term cash needs.

In the fourth quarter, stockholders' net worth increased 2.36% from the prior year.

TheStreet Ratings' price target is $22.52. The stock is trading at $19.60 midday Wednesday and has fallen 3.45% year to date.


Silgan Holdings

The consumer goods packaging company announced on Feb. 16 that it was raising its quarterly dividend 9.1% to 12 cents a share.

"While we are constructive on Silgan's high quality food can business and ability to continue to deliver consistent earnings growth, we remain Neutral rated on valuation," Credit Suisse analysts wrote in a Feb. 1 report. "On a relative basis, we prefer metal packaging peers Ball and Crown, noting similar valuations but what we view as greater secular growth given its leverage to rising beverage can demand in emerging markets."

Forward Annual Dividend Yield: 1.1%

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

In the fourth quarter, stockholders' net worth increased 18.85% from the prior year.

TheStreet Ratings' price target is $50.28. The stock is trading midday Wednesday at $42.68 and has risen 10.46% year to date.

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Wal-Mart

The discount retailer reiterated on Wednesday that its 2012 earnings could reach $4.92 a share, Bloomberg said.

"We believe WMT's Old School strategy is working (traffic positive in F4Q12 for thefirst time in 2 yrs) & should cont to support U.S. comp momentum in '12 givenongoing refinements to its: 1) EDLP emphasis; 2) opening price points/small packsize merchandising; 3) on-shelf availability/in-stock levels; 4) inventory reinvestment& space allocations; 5) local merchandising efforts; 6) category adjacencies," Bank of America Merrill Lynch analysts wrote in a March 6 report.

Forward Annual Dividend Yield: 2.7%

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

Wal-Mart has very weak liquidity. Its Quick Ratio is 0.20, which demonstrates a lack of ability to meet its short-term cash needs.

In the fourth quarter, stockholders' net worth increased 4.04% from the prior year.

TheStreet Ratings' price target is $67.94. The stock is trading at $59.55 midday Wednesday and has fallen slightly year to date.

-- Written by Alexandra Zendrian

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