4 Stocks Going Ex-Dividend Tomorrow: THG, ITT, KBR, ECA

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 13, 2013, 88 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.2% to 15.8%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Hanover Insurance Group

Owners of Hanover Insurance Group (NYSE: THG) shares as of market close today will be eligible for a dividend of 33 cents per share. At a price of $43.80 as of 9:34 a.m. ET, the dividend yield is 3%.

The average volume for Hanover Insurance Group has been 273,700 shares per day over the past 30 days. Hanover Insurance Group has a market cap of $2.0 billion and is part of the insurance industry. Shares are up 12.8% year to date as of the close of trading on Monday.

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The Hanover Insurance Group, Inc., through its subsidiaries, underwrites commercial and personal property, and casualty insurance coverage in the United States. It operates in four segments: Commercial Lines, Personal Lines, Chaucer, and Other Property and Casualty. The company has a P/E ratio of 35.58. Currently there is 1 analyst that rates Hanover Insurance Group a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Hanover Insurance Group 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, reasonable valuation levels, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. You can view the full Hanover Insurance Group Ratings Report now.

ITT

Owners of ITT (NYSE: ITT) shares as of market close today will be eligible for a dividend of 10 cents per share. At a price of $27.54 as of 9:35 a.m. ET, the dividend yield is 1.4%.

The average volume for ITT has been 769,300 shares per day over the past 30 days. ITT has a market cap of $2.6 billion and is part of the industrial industry. Shares are up 18.3% year to date as of the close of trading on Monday.

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ITT Corporation designs and manufactures engineered critical components and customized technology solutions for the energy, transportation, and industrial markets. The company operates in four segments: Industrial Process, Motion Technologies, Interconnect Solutions, and Control Technologies. The company has a P/E ratio of 23.92. Currently there are 3 analysts that rate ITT a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates ITT as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins. You can view the full ITT Ratings Report now.

KBR

Owners of KBR (NYSE: KBR) shares as of market close today will be eligible for a dividend of 8 cents per share. At a price of $31.35 as of 9:35 a.m. ET, the dividend yield is 1%.

The average volume for KBR has been 1.4 million shares per day over the past 30 days. KBR has a market cap of $4.7 billion and is part of the diversified services industry. Shares are up 5.4% year to date as of the close of trading on Monday.

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KBR, Inc. operates as an engineering, construction, and services company worldwide. The company has a P/E ratio of 32.51. Currently there are 7 analysts that rate KBR a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates KBR as a hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity. You can view the full KBR Ratings Report now.

Encana

Owners of Encana (NYSE: ECA) shares as of market close today will be eligible for a dividend of 20 cents per share. At a price of $19.43 as of 9:35 a.m. ET, the dividend yield is 4.1%.

The average volume for Encana has been 5.5 million shares per day over the past 30 days. Encana has a market cap of $14.2 billion and is part of the energy industry. Shares are down 1.5% 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.

Encana Corporation and its subsidiaries engage in the exploration for, development, production, and marketing of natural gas, oil, and natural gas liquids in Canada and the United States. Currently there are 2 analysts that rate Encana a buy, 2 analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Encana as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, poor profit margins, generally disappointing historical performance in the stock itself and generally high debt management risk. You can view the full Encana 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.

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