Dividend Watch: 4 Stocks Going Ex-Dividend Tomorrow: WRB, POM, LINE, BBY

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Tomorrow, Sept. 6, 2013, 22 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.6% to 12%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

WR Berkley

Owners of WR Berkley (NYSE: WRB) shares as of market close today will be eligible for a dividend of 10 cents per share. At a price of $41.18 as of 9:36 a.m. ET, the dividend yield is 1%.

The average volume for WR Berkley has been 499,400 shares per day over the past 30 days. WR Berkley has a market cap of $5.6 billion and is part of the insurance industry. Shares are up 8.8% 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.

W. R. Berkley Corporation, an insurance holding company, operates as commercial lines writers primarily in the United States. The company operates in five segments: Specialty, Regional, Alternative Markets, Reinsurance, and International. The company has a P/E ratio of 11.70.

TheStreet Ratings rates WR Berkley as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, notable return on equity, increase in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins. You can view the full WR Berkley Ratings Report now.

Pepco Holdings

Owners of Pepco Holdings (NYSE: POM) shares as of market close today will be eligible for a dividend of 27 cents per share. At a price of $18.55 as of 9:35 a.m. ET, the dividend yield is 5.8%.

The average volume for Pepco Holdings has been 2.3 million shares per day over the past 30 days. Pepco Holdings has a market cap of $4.6 billion and is part of the utilities industry. Shares are down 5.5% 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.

Pepco Holdings, Inc., through its subsidiaries, engages in the transmission, distribution, and supply of electricity. The company also distributes and supplies natural gas.

TheStreet Ratings rates Pepco Holdings as a hold. Among the primary strengths of the company is its generally strong cash flow from operations. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk. You can view the full Pepco Holdings Ratings Report now.

Linn Energy

Owners of Linn Energy (NASDAQ: LINE) shares as of market close today will be eligible for a dividend of 24 cents per share. At a price of $24.29 as of 9:35 a.m. ET, the dividend yield is 12%.

The average volume for Linn Energy has been 4.2 million shares per day over the past 30 days. Linn Energy has a market cap of $5.7 billion and is part of the energy industry. Shares are down 31.6% 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.

Linn Energy, LLC, an independent oil and natural gas company, engages in the acquisition and development of oil and natural gas properties.

TheStreet Ratings rates Linn Energy as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and a generally disappointing performance in the stock itself. You can view the full Linn Energy 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 $37.16 as of 9:35 a.m. ET, the dividend yield is 1.8%.

The average volume for Best Buy has been 5.4 million shares per day over the past 30 days. Best Buy has a market cap of $12.6 billion and is part of the retail industry. Shares are up 213.4% 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 company has a P/E ratio of 8.45.

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.

null

More from Markets

Asia Markets Fall on Latest Tariff Threats From Trump

Asia Markets Fall on Latest Tariff Threats From Trump

Google Invests in JD.com; Comcast-Disney Battle Nears Head -- ICYMI

Google Invests in JD.com; Comcast-Disney Battle Nears Head -- ICYMI

REPLAY: Jim Cramer on Tariff Worries, Oil, Alphabet and Centene

REPLAY: Jim Cramer on Tariff Worries, Oil, Alphabet and Centene

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

Dow Drops Over 100 Points on Trade War Worries

Dow Drops Over 100 Points on Trade War Worries