2 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: Vale ( VALE) and West Pharmaceutical Services ( WST).

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

Vale

The basic metals company is scheduled to report first-quarter earnings on April 25. Analysts, on average, anticipate earnings of 80 cents a share on revenue of $13 billion.

"Recent share under-performance is overdone in our view, presenting a decent 34% upside to our base case scenario of US$30/shr at these levels," Credit Suisse analysts wrote in a report Tuesday.

Forward Annual Dividend Yield: 5%

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

Vale has average liquidity. Its Quick Ratio is 1.33, which shows the company can technically meet its short-term cash needs.

In the third quarter, stockholders' net worth increased 13.30% from the prior year.

TheStreet Ratings' price target is $26.46.

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West Pharmaceutical Services

The pharmaceutical delivery components company reported fourth-quarter earnings in February of $18.9 million, or 56 cents a share, up from year-earlier earnings of $5.9 million, or 18 cents.

"Management indicated 2012 guidance reflects $0.08-0.15 earnings per share impact from Crystal Zenith products and other proprietary safety/administration devices," Jefferies analysts wrote in a Feb. 23 report. "However, WST acknowledged these sales depend on non- and pre-commercial customer use, which carries a higher risk that revenue may be lower than expected."

Forward Annual Dividend Yield: 1.8%

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

West Pharmaceutical Services has weak liquidity. Its Quick Ratio is 0.98, which demonstrates a lack of ability to meet its short-term cash needs.

In the fourth quarter, stockholders' net worth increased 4.66% from the prior year.

TheStreet Ratings' price target is $47.64.

-- Written by Alexandra Zendrian

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