4 Stocks Going Ex-Dividend Tomorrow: LG, LM, ROST, BBY

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 7, 2013, 7 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.3% to 3.5%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Laclede Group

Owners of Laclede Group (NYSE: LG) shares as of market close today will be eligible for a dividend of 43 cents per share. At a price of $47.32 as of 9:34 a.m. ET, the dividend yield is 3.5%.

The average volume for Laclede Group has been 297,100 shares per day over the past 30 days. Laclede Group has a market cap of $1.5 billion and is part of the utilities industry. Shares are up 21.9% year to date as of the close of trading on Wednesday.

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

The Laclede Group, Inc., through its subsidiaries, engages in the retail distribution, sale, and marketing of natural gas. As of November 19, 2012, the company served approximately 628,000 residential, commercial, and industrial customers in the city of St. The company has a P/E ratio of 16.90.

TheStreet Ratings rates Laclede 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, attractive valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. You can view the full Laclede Group Ratings Report now.

Legg Mason

Owners of Legg Mason (NYSE: LM) shares as of market close today will be eligible for a dividend of 13 cents per share. At a price of $33.55 as of 9:35 a.m. ET, the dividend yield is 1.5%.

The average volume for Legg Mason has been 1.5 million shares per day over the past 30 days. Legg Mason has a market cap of $4.3 billion and is part of the financial services industry. Shares are up 30.1% year to date as of the close of trading on Wednesday.

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Legg Mason, Inc. provides asset management and related financial services to institutional and individual clients, company-sponsored mutual funds, and other pooled investment vehicles worldwide.

TheStreet Ratings rates Legg Mason as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance 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 Legg Mason Ratings Report now.

Ross Stores

Owners of Ross Stores (NASDAQ: ROST) shares as of market close today will be eligible for a dividend of 17 cents per share. At a price of $63.81 as of 9:35 a.m. ET, the dividend yield is 1%.

The average volume for Ross Stores has been 2.1 million shares per day over the past 30 days. Ross Stores has a market cap of $14.2 billion and is part of the retail industry. Shares are up 19.5% year to date as of the close of trading on Wednesday.

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

Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brand names in the United States. It primarily offers apparel, accessories, footwear, and home fashions for the entire family. The company has a P/E ratio of 17.62.

TheStreet Ratings rates Ross Stores 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, notable return on equity, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins. You can view the full Ross Stores Ratings Report now.

Best Buy

Owners of Best Buy (NYSE: BBY) shares as of market close today will be eligible for a dividend of 17 cents per share. At a price of $26.97 as of 9:35 a.m. ET, the dividend yield is 2.5%.

The average volume for Best Buy has been 10.4 million shares per day over the past 30 days. Best Buy has a market cap of $9.3 billion and is part of the retail industry. Shares are up 128.6% year to date as of the close of trading on Wednesday.

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

Best Buy Co., Inc. operates as a retailer of consumer electronics, computing and mobile phone products, entertainment products, appliances, and related services primarily in the United States, Europe, Canada, and China. The company has a P/E ratio of 8.45.

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