4 Stocks Going Ex-Dividend Tomorrow: SHPG, EAT, ADP, TRV

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Tomorrow, March 6, 2013, 43 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.1% to 9.7%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Shire

Owners of Shire (NASDAQ: SHPG) shares as of market close today will be eligible for a dividend of 44 cents per share. At a price of $95.21 as of 9:36 a.m. ET, the dividend yield is 0.5%.

The average volume for Shire has been 327,900 shares per day over the past 30 days. Shire has a market cap of $18.1 billion and is part of the drugs industry. Shares are up 3.3% year to date as of the close of trading on Monday.

EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys dividend stocks that have the potential for a 3% to 4% yield and 10% growth. Get his best picks for less than $50/year.

Shire plc, a specialty biopharmaceutical company, engages in the research and development, manufacture, sale, and distribution of pharmaceutical products. It operates in three segments: Specialty Pharmaceuticals, Human Genetic Therapies, and Regenerative Medicine. The company has a P/E ratio of 24.50. Currently there are 11 analysts that rate Shire a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Shire as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. You can view the full Shire Ratings Report now.

Brinker International

Owners of Brinker International (NYSE: EAT) shares as of market close today will be eligible for a dividend of 20 cents per share. At a price of $35.07 as of 9:36 a.m. ET, the dividend yield is 2.4%.

The average volume for Brinker International has been 1.7 million shares per day over the past 30 days. Brinker International has a market cap of $2.4 billion and is part of the leisure industry. Shares are up 11.6% year to date as of the close of trading on Monday.

EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys dividend stocks that have the potential for a 3% to 4% yield and 10% growth. Get his best picks for less than $50/year.

Brinker International, Inc. owns, develops, operates, and franchises various restaurant brands primarily in the United States. It operates the restaurants under the Chili's Grill & Bar and Maggiano's Little Italy brand names. The company has a P/E ratio of 16.85. Currently there are 9 analysts that rate Brinker International a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Brinker International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. You can view the full Brinker International Ratings Report now.

Automatic Data Processing

Owners of Automatic Data Processing (NASDAQ: ADP) shares as of market close today will be eligible for a dividend of 44 cents per share. At a price of $62.06 as of 9:35 a.m. ET, the dividend yield is 2.8%.

The average volume for Automatic Data Processing has been 1.9 million shares per day over the past 30 days. Automatic Data Processing has a market cap of $29.9 billion and is part of the computer software & services industry. Shares are up 8.6% year to date as of the close of trading on Monday.

EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys dividend stocks that have the potential for a 3% to 4% yield and 10% growth. Get his best picks for less than $50/year.

Automatic Data Processing, Inc. and its subsidiaries provide business outsourcing solutions. The company operates in three segments: Employer Services, Professional Employer Organization (PEO) Services, and Dealer Services. The company has a P/E ratio of 22.10. Currently there are 10 analysts that rate Automatic Data Processing a buy, 2 analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Automatic Data Processing as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. You can view the full Automatic Data Processing Ratings Report now.

Travelers Companies

Owners of Travelers Companies (NYSE: TRV) shares as of market close today will be eligible for a dividend of 46 cents per share. At a price of $80.82 as of 9:35 a.m. ET, the dividend yield is 2.3%.

The average volume for Travelers Companies has been 2.2 million shares per day over the past 30 days. Travelers Companies has a market cap of $30.5 billion and is part of the insurance industry. Shares are up 12.1% year to date as of the close of trading on Monday.

EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys dividend stocks that have the potential for a 3% to 4% yield and 10% growth. Get his best picks for less than $50/year.

The Travelers Companies, Inc., through its subsidiaries, provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States. The company has a P/E ratio of 12.81. Currently there are 11 analysts that rate Travelers Companies a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Travelers Companies as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income. You can view the full Travelers Companies Ratings Report now.

More About Dividends:

One benefit of owning a stock is the potential that you will be paid a dividend. The distribution of dividend payments is another way for a company to share its profit with you. A dividend means that the company pays you a certain amount of money, either as a one-time payment or more commonly on a quarterly basis, for each share of stock you own.

Many times, dividends come at the expense of greater price appreciation, because the company is distributing its profits to shareholders rather than reinvesting the profits back into the growth of the company. However, companies that pay dividends can be very attractive to investors when they offer a steady stream of income. There are some important terms and dates an investor should be familiar with before purchasing any dividend-paying companies. Let's work through an example to help better explain some of these terms:

On March 1, ABC Widget Company has decided that because it holds excess cash and lacks investment opportunities, it would like to reward shareholders with a regular quarterly dividend payment. The date for this particular announcement is known as the declaration date. It is on this date that the company announces the specific dividend payment along with the holder of record date (aka record date) and the payment date. The company announces that a dividend payment of 25 cents per share will be payable March 31, 2012 (the payment date) to all shareholders of record at the close of business on March 16, 2012 (holder of record date). What does this all mean? Well the short story is that the company looks at its records on March 16 and anyone listed on the books as an owner of ABC Widget company will be eligible for the dividend payment (on March 31).

The one other important term to remember is the ex-dividend date. The ex-dividend date (typically two trading days before the holder of record date for U.S. securities) is the day in which a company begins trading without the dividend. In order to have a claim on a dividend, shares must be purchased no later than the last business day before the ex-dividend date. A company trading ex-dividend will have the upcoming dividend subtracted from the share price at the start of the trading day. Many times, the price of a stock will increase in anticipation of the upcoming dividend as the ex-dividend date approaches, yet will fall back by the amount of the dividend on the ex-dividend date.

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
null

If you liked this article you might like

Quanterix Uses JPMorgan Healthcare Conference to Scout Sales Candidates

Quanterix Uses JPMorgan Healthcare Conference to Scout Sales Candidates

10 Biotech Stocks Investors Should Put on Their Shopping List for 2018

10 Biotech Stocks Investors Should Put on Their Shopping List for 2018

10 Biotech Stocks to Watch in 2018

10 Biotech Stocks to Watch in 2018

Roche Stock Surges on Trial Successes in Cancer, Haemophilia

Roche Stock Surges on Trial Successes in Cancer, Haemophilia

Billionaire Hedge Fund Manager Leon Cooperman Gave His Top 5 Cheap Stocks