8 Ex-Dividend Stocks With Buy Ratings

NEW YORK ( TheStreet) -- The following stocks go ex-dividend Monday, meaning an investor must purchase the shares Friday to qualify for the next dividend payment: Toronto Dominion Bank ( TD), Raytheon ( RTN), Rent-A-Center ( RCII), Kimco Realty ( KIM), CVB Financial ( CVBF), Covidien ( COV), Comcast ( CMCSA) and Mack-Cali Realty ( CLI).

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

Toronto Dominion Bank

The bank reported on March 1 first-quarter earnings of 1.4 billion Canadian dollars, or C$1.87 a share, down from year-earlier earnings of 1.5 billion Canadian dollars, or C$1.75 a share.

"TD remains Outperform rated," BMO Capital Markets analysts wrote in a March 1 report. "Strong loan growth in both Canadian and U.S. retail banking highlights the strength of TD's business model. Given its momentum, U.S. earnings growth should accelerate next year after the impact of the Durbin amendment abates. The relative valuation on TD's shares should improve given the continued strength of its retail franchises. Member of Top 15 Large Cap, Income and Quantitative stock selections."

Forward Annual Dividend Yield: 3.4%

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

In the first quarter, stockholders' net worth increased 6.1% from the prior year.

TheStreet Ratings' price target is $97.01. The stock closed Thursday at $84.63 and has risen 13.13% year to date.

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Raytheon

"Raytheon raised its quarterly dividend on common stock 16.3% to 50¢ from 43¢ last night," Bank of America Merrill Lynch analysts wrote in a March 22 report. "The dividend is payable on 3 May 2012 to shareholders of record as of 4 April 2012. The dividend increase was above BofAMLe forecast of 45¢. We are increasing our 2012 dividend forecast to $2.00 from $1.78 and raising outyear dividend estimates. On balance, we were not surprised by the company's dividend increase as the company has plentiful cash. We note that RTN ended 4Q11 with $4bn of cash on the balance sheet. This represents ~23% of the company's market cap of $17.595bn as of 21 March 2012. We would not be surprised to see more aggressive share buybacks through the year or other means of cash deployment."

Forward Annual Dividend Yield: 3.8%

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

Raytheon has weak liquidity. Its Quick Ratio is 0.87, which demonstrates a lack of ability to meet its short-term cash needs.

In the fourth quarter, stockholders' net worth decreased 16.12% from the prior year.

TheStreet Ratings' price target is $60.01. The stock closed Thursday at $52.86 and has risen 9.26% year to date.


Rent-A-Center

"We believe there are additional signs suggesting the ongoing RAC Acceptance test with Best Buy (BBY- $25.08 - Not Rated) may expand meaningfully in the near term," Sterne Agee analysts wrote in a Feb. 23 report. "Our checks show the possibility of 190 RAC Acceptance locations within Best Buy stores in the states of California and Florida. If such a transaction were to occur, we see incremental revenue/EPS potential of $115M and $0.25 for RCII once these stores mature (~4 years). In addition, if the agreement between RCII and BBY expands to more states, the revenue/EPS potential could be higher."

Forward Annual Dividend Yield: 1.7%

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

In the fourth quarter, stockholders' net worth remained about the same as last year.

TheStreet Ratings' price target is $44.13. The stock closed Thursday at $38.14 and has risen 3.08% year to date.

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Kimco Realty

The real estate investment trust is scheduled to report first-quarter earnings on May 1. Analysts, on average, anticipate earnings of 30 cents a share on revenue of $228.22 million.

"We expect Kimco will continue to make solid progress monetizing non-strategic retail and non-retail assets but this is potentially offset against an environment of a rising average in-place interest rate due to a combination of a moderate rise in rates and shift towards fixed rate, term debt," Wells Fargo analysts wrote in a Feb. 10 report. "Our 2012 FFO per share estimate remains $1.25 but we are reducing our 2013 FFO per share estimate to $1.25 from $1.30. We are increasing our valuation range from $18.50-$20.00 to $18.75-$20.00. Maintain Market Perform rating."

Forward Annual Dividend Yield: 3.9%

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

In the fourth quarter, stockholders' net worth decreased 5.05% from the prior year.

TheStreet Ratings' price target is $22.14. The stock closed Thursday at $19.28 and has risen 18.72% year to date.


CVB Financial

"CVBF shares have increased roughly 60% since the banking sector bottomed at the beginning of October and we believe they reflect a relatively full valuation at 1.9x TBV/share and 14x our 2012 EPS estimate," Wunderlich Securities analysts wrote in a March 22 report. "We remain encouraged by management's actions over the past several quarters to clean up the balance sheet and compete from a position of strength in Southern California. However, we believe such progress is largely discounted in the current share price, and the lack of a near-term catalyst to drive the shares meaningfully higher moves us to the sidelines at this point."

Forward Annual Dividend Yield: 2.9%

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

In the fourth quarter, stockholders' net worth increased 11.02% from the prior year.

TheStreet Ratings' price target is $13.73. The stock closed Thursday at $11.78 and has risen 17.21% year to date.

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Covidien

The health care products company is scheduled to report second-quarter earnings on April 27. Analysts, on average, expect earnings of $1.03 a share on revenue of $2.89 billion.

"With several compelling newer products on the market across the medical device portfolio (LigaSure small jaw, Endo GIA with Tri‐Staple technology, Everflex with an SFA indication, Pipeline, and Solitaire), the Newport acquisition should clear headwinds facing Covidien's key medical device business this year," William Blair analysts wrote in a March 23 report. "We anticipate the company will generate mid‐ to high‐single‐digit revenue growth from this unit (on a constant‐currency basis) over the next two years."

Forward Annual Dividend Yield: 1.7%

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

Covidien has average liquidity. Its Quick Ratio is 1.47, which shows the company can technically meet its short-term cash needs.

In the first quarter, stockholders' net worth increased 9.95% from the prior year.

TheStreet Ratings' price target is $61.92. The stock closed Thursday at $53.93 and has risen 19.82% year to date.


Comcast

The media giant is scheduled to report first-quarter earnings on May 1. Analysts, on average, anticipate earnings of 42 cents a share on $14.43 billion in revenue.

"Upon review, it appeared as if ARPU growth had been too meager and margins too flat for the core residential business in our prior model, with too-aggressive Business Services margin expansion (however, we do still see a 5-year +30% revenue compound annual growth rate )," Miller Tabak analysts wrote in a March 20 report.

Forward Annual Dividend Yield: 2.2%

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

Comcast has very weak liquidity. Its Quick Ratio is 0.46, which demonstrates a lack of ability to meet its short-term cash needs.

In the fourth quarter, stockholders' net worth increased 6.58% from the prior year.

TheStreet Ratings' price target is $34.52. The stock closed Thursday at $29.83 and has risen 25.81% year to date.

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Mack-Cali Realty

The REIT is scheduled to report first-quarter earnings on April 25. Analysts, on average, expect earnings of 67 cents a share on revenue of $181.84 million.

"We rate CLI Neutral as result of our less bullish stance on suburban office trends compared to other segments of the REIT space," JPMorgan analysts wrote in a Feb. 23 report. "That said, we believe the company's balance sheet is quite strong and its valuation is fairly cheap."

Forward Annual Dividend Yield: 6.3%

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

In the fourth quarter, stockholders' net worth increased 7.46% from the prior year.

TheStreet Ratings' price target is $32.66. The stock closed Thursday at $28.79 and has risen 7.87% year to date.

-- Written by Alexandra Zendrian

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