4 Stocks Going Ex-Dividend Tomorrow: WR, CNI, SDRL, WMB

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, June 5, 2013, 41 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:

Westar Energy

Owners of Westar Energy (NYSE: WR) shares as of market close today will be eligible for a dividend of 34 cents per share. At a price of $31.74 as of 9:36 a.m. ET, the dividend yield is 4.3%.

The average volume for Westar Energy has been 751,000 shares per day over the past 30 days. Westar Energy has a market cap of $4.0 billion and is part of the utilities industry. Shares are up 10.7% year to date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

Westar Energy, Inc., an electric utility, engages in the generation, transmission, and distribution of electricity in Kansas. It produces electricity through various sources, including coal, wind, nuclear, natural gas, diesel, uranium, and landfill gas. The company has a P/E ratio of 13.56.

TheStreet Ratings rates Westar Energy as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, good cash flow from operations, notable return on equity and increase in stock price during the past year. 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 Westar Energy Ratings Report now.

Canadian National Railway

Owners of Canadian National Railway (NYSE: CNI) shares as of market close today will be eligible for a dividend of 42 cents per share. At a price of $103.10 as of 9:36 a.m. ET, the dividend yield is 1.7%.

The average volume for Canadian National Railway has been 707,500 shares per day over the past 30 days. Canadian National Railway has a market cap of $42.9 billion and is part of the transportation industry. Shares are up 11.3% year to date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

Canadian National Railway Company, together with its subsidiaries, engages in rail and related transportation business in North America. The company has a P/E ratio of 18.15.

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

Seadrill

Owners of Seadrill (NYSE: SDRL) shares as of market close today will be eligible for a dividend of 88 cents per share. At a price of $41.28 as of 9:36 a.m. ET, the dividend yield is 8.7%.

The average volume for Seadrill has been 2.3 million shares per day over the past 30 days. Seadrill has a market cap of $19.0 billion and is part of the energy industry. Shares are up 12% year to date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

Seadrill Limited provides offshore drilling services to the oil and gas industry worldwide. The company operates in three segments: Floaters, Jack-up Rigs, and Tender Rigs. The company has a P/E ratio of 17.32.

TheStreet Ratings rates Seadrill as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, increase in stock price during the past year, growth in earnings per share and expanding profit margins. 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 Seadrill Ratings Report now.

Williams Companies

Owners of Williams Companies (NYSE: WMB) shares as of market close today will be eligible for a dividend of 35 cents per share. At a price of $35.06 as of 9:35 a.m. ET, the dividend yield is 4%.

The average volume for Williams Companies has been 7.0 million shares per day over the past 30 days. Williams Companies has a market cap of $24.0 billion and is part of the energy industry. Shares are up 6.8% year to date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

The Williams Companies, Inc. operates as an energy infrastructure company. The company has a P/E ratio of 38.66.

TheStreet Ratings rates Williams Companies as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. You can view the full Williams 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.

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