Ex-Dividends To Watch: 2 Stocks Going Ex-Dividend Tomorrow: DK, ORCL

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, Oct. 4, 2013, 2 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 1.4% to 2.9%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Delek US Holdings

Owners of Delek US Holdings (NYSE: DK) shares as of market close today will be eligible for a dividend of 10 cents per share. At a price of $21.48 as of 9:29 a.m. ET, the dividend yield is 2.9%.

The average volume for Delek US Holdings has been 733,600 shares per day over the past 30 days. Delek US Holdings has a market cap of $1.2 billion and is part of the energy industry. Shares are down 18.3% year to date as of the close of trading on Wednesday.

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Delek US Holdings, Inc. operates as an integrated downstream energy company that operates in petroleum refining, logistics, and convenience store retailing businesses. The company operates in three segments: Refining, Logistics, and Retail. The company has a P/E ratio of 4.40.

TheStreet Ratings rates Delek US Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins. You can view the full Delek US Holdings Ratings Report now.

Oracle Corporation

Owners of Oracle Corporation (NYSE: ORCL) shares as of market close today will be eligible for a dividend of 12 cents per share. At a price of $33.51 as of 9:30 a.m. ET, the dividend yield is 1.4%.

The average volume for Oracle Corporation has been 23.4 million shares per day over the past 30 days. Oracle Corporation has a market cap of $153.3 billion and is part of the computer software & services industry. Shares are up 1% year to date as of the close of trading on Wednesday.

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Oracle Corporation develops, manufactures, markets, hosts, and supports database and middleware software, applications software, and hardware systems. The company has a P/E ratio of 14.50.

TheStreet Ratings rates Oracle Corporation as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, notable return on equity, attractive valuation levels and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. You can view the full Oracle Corporation 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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