Dividend Watch: 4 Stocks Going Ex-Dividend Tomorrow: CPTA, CNO, BDX, TRV

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, Dec. 6, 2013, 18 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.7% to 9.4%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Capitala Finance

Owners of Capitala Finance (NASDAQ: CPTA) shares as of market close today will be eligible for a dividend of 47 cents per share. At a price of $19.79 as of 9:30 a.m. ET, the dividend yield is 9.4%.

The average volume for Capitala Finance has been 216,700 shares per day over the past 30 days. Capitala Finance has a market cap of $258.2 million and is part of the financial services industry. Shares are unchanged 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.

CNO Financial Group

Owners of CNO Financial Group (NYSE: CNO) shares as of market close today will be eligible for a dividend of 3 cents per share. At a price of $16.68 as of 9:40 a.m. ET, the dividend yield is 0.7%.

The average volume for CNO Financial Group has been 1.8 million shares per day over the past 30 days. CNO Financial Group has a market cap of $3.7 billion and is part of the insurance industry. Shares are up 78.7% 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.

CNO Financial Group, Inc., through its subsidiaries, develops, markets, and administers health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. The company has a P/E ratio of 8.46.

TheStreet Ratings rates CNO Financial Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, compelling growth in net income, attractive valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. You can view the full CNO Financial Group Ratings Report now.

Becton Dickinson

Owners of Becton Dickinson (NYSE: BDX) shares as of market close today will be eligible for a dividend of 54 cents per share. At a price of $107.66 as of 9:40 a.m. ET, the dividend yield is 2%.

The average volume for Becton Dickinson has been 687,200 shares per day over the past 30 days. Becton Dickinson has a market cap of $21.0 billion and is part of the health services industry. Shares are up 38.6% 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.

Becton, Dickinson and Company, a medical technology company, develops, manufactures, and sells medical devices, instrument systems, and reagents worldwide. The company's BD Medical segment produces medical devices that are used in various healthcare settings. The company has a P/E ratio of 23.21.

TheStreet Ratings rates Becton Dickinson as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. You can view the full Becton Dickinson Ratings Report now.

Travelers Companies

Owners of Travelers Companies (NYSE: TRV) shares as of market close today will be eligible for a dividend of 50 cents per share. At a price of $88.48 as of 9:40 a.m. ET, the dividend yield is 2.2%.

The average volume for Travelers Companies has been 1.9 million shares per day over the past 30 days. Travelers Companies has a market cap of $32.4 billion and is part of the insurance industry. Shares are up 24% 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 Travelers Companies, Inc., through its subsidiaries, provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States. The company has a P/E ratio of 11.34.

TheStreet Ratings rates Travelers Companies as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, growth in earnings per share and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. You can view the full Travelers Companies 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.

null

More from Markets

U.S. Banks Pass Fed 'Stress Test' With Room for Dividends, Buybacks

U.S. Banks Pass Fed 'Stress Test' With Room for Dividends, Buybacks

U.S. Drillers at Mercy of Iran, Saudi Production Spat as OPEC Meeting Begins

U.S. Drillers at Mercy of Iran, Saudi Production Spat as OPEC Meeting Begins

Comcast's Brian Roberts vs. Disney's Bob Iger: Which Titan Will Nab Fox?

Comcast's Brian Roberts vs. Disney's Bob Iger: Which Titan Will Nab Fox?

Online Retailers Hit by Supreme Court Ruling Requiring Sales Tax Collection

Online Retailers Hit by Supreme Court Ruling Requiring Sales Tax Collection

Dow Logs Eighth Straight Drop as Stocks Slump

Dow Logs Eighth Straight Drop as Stocks Slump