Ex-Dividend Alert: 3 Stocks Going Ex-Dividend Tomorrow: LNC, COV, VZ

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. 8, 2013, 6 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 1.1% to 4.7%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Lincoln National Corp (Radnor

Owners of Lincoln National Corp (Radnor (NYSE: LNC) shares as of market close today will be eligible for a dividend of 12 cents per share. At a price of $42.50 as of 9:30 a.m. ET, the dividend yield is 1.1%.

The average volume for Lincoln National Corp (Radnor has been 2.5 million shares per day over the past 30 days. Lincoln National Corp (Radnor has a market cap of $11.1 billion and is part of the insurance industry. Shares are up 62.2% 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.

Lincoln National Corporation, through its subsidiaries, engages in multiple insurance and retirement businesses in the United States. The company operates in Annuities, Retirement Plan Services, Life Insurance, and Group Protection segments. The company has a P/E ratio of 9.24.

TheStreet Ratings rates Lincoln National Corp (Radnor as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, attractive valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins. You can view the full Lincoln National Corp (Radnor Ratings Report now.

Covidien

Owners of Covidien (NYSE: COV) shares as of market close today will be eligible for a dividend of 32 cents per share. At a price of $60.02 as of 9:30 a.m. ET, the dividend yield is 2.1%.

The average volume for Covidien has been 2.3 million shares per day over the past 30 days. Covidien has a market cap of $28.5 billion and is part of the health services industry. Shares are up 7.3% 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.

Covidien plc develops, manufactures, and sells healthcare products for use in clinical and home settings worldwide. The company has a P/E ratio of 15.52.

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

Verizon Communications

Owners of Verizon Communications (NYSE: VZ) shares as of market close today will be eligible for a dividend of 53 cents per share. At a price of $46.95 as of 9:30 a.m. ET, the dividend yield is 4.5%.

The average volume for Verizon Communications has been 11.4 million shares per day over the past 30 days. Verizon Communications has a market cap of $135.3 billion and is part of the telecommunications industry. Shares are up 9.2% 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.

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 87.54.

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 growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. 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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