3 Stocks Going Ex-Dividend Tomorrow: FNV, EC, POT

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, April 9, 2013, 7 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0% to 10.7%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Franco-Nevada

Owners of Franco-Nevada (NYSE: FNV) shares as of market close today will be eligible for a dividend of 6 cents per share. At a price of $42.59 as of 9:36 a.m. ET, the dividend yield is 1.7%.

The average volume for Franco-Nevada has been 314,900 shares per day over the past 30 days. Franco-Nevada has a market cap of $6.4 billion and is part of the metals & mining industry. Shares are down 24.3% year to date as of the close of trading on Friday.

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Franco-Nevada Corporation operates as a gold-focused royalty and stream company in the United States, Canada, Mexico, Australia, and Africa. The company has interests in platinum group metal, oil and gas, and other resource properties. The company has a P/E ratio of 61.32. Currently there are 3 analysts that rate Franco-Nevada a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Franco-Nevada as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. You can view the full Franco-Nevada Ratings Report now.

Ecopetrol S.A

Owners of Ecopetrol S.A (NYSE: EC) shares as of market close today will be eligible for a dividend of per share. At a price of $55.02 as of 9:36 a.m. ET, the dividend yield is 10.7%.

The average volume for Ecopetrol S.A has been 491,600 shares per day over the past 30 days. Ecopetrol S.A has a market cap of $110.5 billion and is part of the energy industry. Shares are down 8.5% year to date as of the close of trading on Friday.

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.

Ecopetrol S.A., an integrated oil company, engages in the exploration, development, and production of crude oil and natural gas. As of December 31, 2011, its proved reserves of crude oil and natural gas totaled 1,856.7 million barrels of oil equivalent. The company has a P/E ratio of 8.96. Currently there are no analysts that rate Ecopetrol S.A a buy, 3 analysts rate it a sell, and 2 rate it a hold.

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

Potash Corporation of Saskatchewan

Owners of Potash Corporation of Saskatchewan (NYSE: POT) shares as of market close today will be eligible for a dividend of 28 cents per share. At a price of $39.27 as of 9:36 a.m. ET, the dividend yield is 2.8%.

The average volume for Potash Corporation of Saskatchewan has been 4.1 million shares per day over the past 30 days. Potash Corporation of Saskatchewan has a market cap of $34.3 billion and is part of the chemicals industry. Shares are down 3.1% year to date as of the close of trading on Friday.

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.

Potash Corporation of Saskatchewan Inc., together with its subsidiaries, produces and sells fertilizers and related industrial and feed products primarily in the United States and Canada. The company mines and produces potash, which is used as fertilizer. The company has a P/E ratio of 16.71. Currently there are 11 analysts that rate Potash Corporation of Saskatchewan a buy, 2 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Potash Corporation of Saskatchewan as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. You can view the full Potash Corporation of Saskatchewan 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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