Ex-Dividend Stocks: Advance Auto Parts

NEW YORK ( TheStreet) -- The following stocks go ex-dividend Wednesday, meaning an investor must purchase the shares Tuesday to qualify for the next dividend payment: Advance Auto Parts ( AAP), Canadian Pacific Railway ( CP) and Convergys ( CVG).

Advance Auto Parts

The car aftermarket parts company reported first-quarter net income on May 17 of $133.5 million, or $1.79 a share, up from year-earlier earnings of $109.6 million, or $1.35 a share.

"Our Buy rating had been predicated on market share gains, particularly in the commercial business, improvements in DIY and expense savings," Deutsche Bank analysts wrote in a May 17 report. "This had worked since our initiation with a Buy and the stock had outperformed even with recent weakness, up 17.9% YTD compared to the market up 5.3% and the S&P Retail Index up 17.7%. But, AAP's comp of 2.1% against easier comparison compared to ORLY's (Hold,$97.54) comp of 6.1% through March 31 and AZO's (Hold,$376.38) 5.9% through February 11th shows share loss even in the face of what appears to be improving industry data. As comparisons become more difficult, we'd expect trends to remain challenged. So, it looks like the share gain story in commercial as well as the improvements in DIY, which both occurred last quarter, have stopped. As such, we are moving to Hold to Buy."

Forward Annual Dividend Yield: 0.3%

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Canadian Pacific Railway

The rail transportation company announced on June 4 that Paul Haggis was elected chairman. He's also chairman of Alberta Enterprise Corp. and C.A. Bancorp.

"With a new board and chairman, and a new CEO coming in soon, thedistraction of pushing for change has been lifted and tangible steps forwardshould begin to show," CIBC analysts wrote in a June 7 report. "The path to an industry-competitive OR will need to carefully balance service and operational improvements."

Forward Annual Dividend Yield: 1.9%


Convergys

The relationship management solutions firm reported first-quarter earnings on May 8 of $26 million, or 22 cents a share, down from $22 million, or 17 cents a share.

"In the earnings release/today's call, CVG noted that Jeff Fox will be replaced as CEO in Q412 by Andrea Ayers, current CM COO and President, and will transition to Board Chairman," Credit Suisse analysts wrote in a May 9 report. "Also, Earl Shanks will be replaced as CFO in Q312 by Andre Valentine, current SVP (Finance), at CM. Given Jeff and Earl's successful transformation of CVG over the past two years, we were surprised by the timing of these changes. However, we believe CVG's transition to a pure-play customer care services company and the strong operating track record of the incoming CEO/CFO may have helped drive the earlier-than-expected transition, and we believe current management has set the stage for a smooth handoff."

Forward Annual Dividend Yield: 1.4%

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-- Written by Alexandra Zendrian

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