Monday's Ex-Dividends To Watch: OIBR, AEO, RTN

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.

Monday, Sept. 30, 2013, 6 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 1.8% to 15.3%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Monday:

Oi

Owners of Oi (NYSE: OIBR) shares as of market close today will be eligible for a dividend of 12 cents per share. At a price of $1.99 as of 4:02 p.m. ET, the dividend yield is 15.3%.

The average volume for Oi has been 4.5 million shares per day over the past 30 days. Oi has a market cap of $4.1 billion and is part of the telecommunications industry. Shares are down 42.9% 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.

Oi S.A., through its subsidiaries, provides integrated telecommunication services for residential customers, companies, and governmental agencies in Brazil. It operates in three segments: Fixed-Line and Data Transmission Services, Mobile Services, and Other Services.

TheStreet Ratings rates Oi as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk and generally disappointing historical performance in the stock itself. You can view the full Oi Ratings Report now.

American Eagle Outfitters

Owners of American Eagle Outfitters (NYSE: AEO) shares as of market close today will be eligible for a dividend of 13 cents per share. At a price of $14.24 as of 4:02 p.m. ET, the dividend yield is 3.5%.

The average volume for American Eagle Outfitters has been 3.8 million shares per day over the past 30 days. American Eagle Outfitters has a market cap of $2.8 billion and is part of the retail industry. Shares are down 30.4% 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.

American Eagle Outfitters, Inc., together with its subsidiaries, operates as an apparel and accessories retailer in the United States and Canada. The company has a P/E ratio of 12.75.

TheStreet Ratings rates American Eagle Outfitters as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins. You can view the full American Eagle Outfitters Ratings Report now.

Raytheon Company

Owners of Raytheon Company (NYSE: RTN) shares as of market close today will be eligible for a dividend of 55 cents per share. At a price of $79.80 as of 4:00 p.m. ET, the dividend yield is 2.8%.

The average volume for Raytheon Company has been 1.9 million shares per day over the past 30 days. Raytheon Company has a market cap of $25.4 billion and is part of the aerospace/defense industry. Shares are up 36.7% 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.

Raytheon Company designs, develops, manufactures, integrates, and supports technological products, services, and solutions for governmental and commercial customers in the United States and internationally. The company has a P/E ratio of 13.34.

TheStreet Ratings rates Raytheon Company as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins. You can view the full Raytheon Company 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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