Ex-Dividend Alert: 3 Stocks Going Ex-Dividend Tomorrow: IFF, CY, TWO

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. 24, 2013, 7 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.2% to 12.3%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

International Flavors & Fragrances

Owners of International Flavors & Fragrances (NYSE: IFF) shares as of market close today will be eligible for a dividend of 39 cents per share. At a price of $82.75 as of 9:36 a.m. ET, the dividend yield is 1.9%.

The average volume for International Flavors & Fragrances has been 286,000 shares per day over the past 30 days. International Flavors & Fragrances has a market cap of $6.9 billion and is part of the chemicals industry. Shares are up 26.1% year to date as of the close of trading on Friday.

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

International Flavors & Fragrances Inc., together with its subsidiaries, creates, manufactures, and supplies flavor and fragrance products worldwide. The company operates in two segments, Flavors and Fragrances. The company has a P/E ratio of 24.90.

TheStreet Ratings rates International Flavors & Fragrances 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 largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. You can view the full International Flavors & Fragrances Ratings Report now.

Cypress Semiconductor Corporation

Owners of Cypress Semiconductor Corporation (NASDAQ: CY) shares as of market close today will be eligible for a dividend of 11 cents per share. At a price of $11.50 as of 9:36 a.m. ET, the dividend yield is 3.8%.

The average volume for Cypress Semiconductor Corporation has been 2.7 million shares per day over the past 30 days. Cypress Semiconductor Corporation has a market cap of $1.7 billion and is part of the electronics industry. Shares are up 6.5% year to date as of the close of trading on Friday.

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

Cypress Semiconductor Corporation, together with its subsidiaries, designs, develops, manufactures, and markets mixed-signal, programmable solutions, specialized semiconductor memories, and integrated semiconductor solutions.

TheStreet Ratings rates Cypress Semiconductor Corporation as a hold. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow. You can view the full Cypress Semiconductor Corporation Ratings Report now.

Two Harbors Investment

Owners of Two Harbors Investment (NYSE: TWO) shares as of market close today will be eligible for a dividend of 28 cents per share. At a price of $9.92 as of 9:36 a.m. ET, the dividend yield is 11.1%.

The average volume for Two Harbors Investment has been 5.9 million shares per day over the past 30 days. Two Harbors Investment has a market cap of $3.7 billion and is part of the real estate industry. Shares are down 10.7% year to date as of the close of trading on Friday.

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Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), residential mortgage loans, and other financial assets. The company has a P/E ratio of 4.24.

TheStreet Ratings rates Two Harbors Investment as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share. You can view the full Two Harbors Investment 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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