4 Stocks Going Ex-Dividend Monday: IDCC, DRI, GIS, VZ

Monday, July 8, 2013, 11 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.5% to 5.1%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Monday:

InterDigital

Owners of InterDigital (NASDAQ: IDCC) shares as of market close today will be eligible for a dividend of 10 cents per share. At a price of $37.99 as of 1:00 p.m. ET, the dividend yield is 1%.

The average volume for InterDigital has been 341,300 shares per day over the past 30 days. InterDigital has a market cap of $1.6 billion and is part of the telecommunications industry. Shares are down 4.5% year to date as of the close of trading on Tuesday.

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

InterDigital, Inc. engages in the design and development of technologies that enable and enhance wireless communications in the United States, Korea, Canada, Europe, and Asia. The company has a P/E ratio of 6.80.

TheStreet Ratings rates InterDigital as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and feeble growth in the company's earnings per share. You can view the full InterDigital Ratings Report now.

Darden Restaurants

Owners of Darden Restaurants (NYSE: DRI) shares as of market close today will be eligible for a dividend of 55 cents per share. At a price of $50.96 as of 1:00 p.m. ET, the dividend yield is 4.3%.

The average volume for Darden Restaurants has been 1.5 million shares per day over the past 30 days. Darden Restaurants has a market cap of $6.6 billion and is part of the leisure industry. Shares are up 13% year to date as of the close of trading on Tuesday.

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

Darden Restaurants, Inc. owns and operates full service restaurants in the United States and Canada. It operates restaurants under the Red Lobster, Olive Garden, LongHorn Steakhouse, The Capital Grille, Bahama Breeze, Seasons 52, Eddie V's Prime Seafood, and Wildfish Seafood Grille brand names. The company has a P/E ratio of 16.13.

TheStreet Ratings rates Darden Restaurants as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. You can view the full Darden Restaurants Ratings Report now.

General Mills

Owners of General Mills (NYSE: GIS) shares as of market close today will be eligible for a dividend of 38 cents per share. At a price of $48.95 as of 1:01 p.m. ET, the dividend yield is 3.1%.

The average volume for General Mills has been 3.6 million shares per day over the past 30 days. General Mills has a market cap of $31.5 billion and is part of the food & beverage industry. Shares are up 21.6% year to date as of the close of trading on Tuesday.

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

General Mills, Inc. manufactures and markets branded consumer foods worldwide. The company also supplies branded and unbranded food products to the foodservice and commercial baking industries. The company has a P/E ratio of 18.14.

TheStreet Ratings rates General Mills as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, notable return on equity, good cash flow from operations 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 General Mills Ratings Report now.

Verizon Communications

Owners of Verizon Communications (NYSE: VZ) shares as of market close today will be eligible for a dividend of 52 cents per share. At a price of $51.01 as of 1:04 p.m. ET, the dividend yield is 4.1%.

The average volume for Verizon Communications has been 12.7 million shares per day over the past 30 days. Verizon Communications has a market cap of $149.4 billion and is part of the telecommunications industry. Shares are up 17% year to date as of the close of trading on Tuesday.

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

Verizon Communications Inc., through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses, and governmental agencies worldwide. The company has a P/E ratio of 125.90.

TheStreet Ratings rates Verizon Communications 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, expanding profit margins 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 Verizon Communications 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.

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