Ex-Dividend Alert: 3 Stocks Going Ex-Dividend Monday: IDCC, CIM, GPS

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, Jan. 6, 2014, 6 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.5% to 11.7%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Monday:

InterDigital

Owners of InterDigital (NASDAQ: IDCC) shares as of market close today will be eligible for a dividend of 10 cents per share. At a price of $29.49 as of 4:00 p.m. ET, the dividend yield is 1.4%.

The average volume for InterDigital has been 527,000 shares per day over the past 30 days. InterDigital has a market cap of $1.2 billion and is part of the telecommunications industry. Shares are down 27.4% year-to-date as of the close of trading on Monday.

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

InterDigital, Inc. engages in the design and development of technologies that enable and enhance wireless communications in the United States, Korea, Canada, Europe, and Asia. The company has a P/E ratio of 28.48.

TheStreet Ratings rates InterDigital as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity. You can view the full InterDigital Ratings Report now.

Chimera Investment Corporation

Owners of Chimera Investment Corporation (NYSE: CIM) shares as of market close today will be eligible for a dividend of 20 cents per share. At a price of $3.10 as of 4:01 p.m. ET, the dividend yield is 11.7%.

The average volume for Chimera Investment Corporation has been 7.4 million shares per day over the past 30 days. Chimera Investment Corporation has a market cap of $3.2 billion and is part of the real estate industry. Shares are up 18% year-to-date as of the close of trading on Monday.

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

Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. The company has a P/E ratio of 11.00.

TheStreet Ratings rates Chimera Investment Corporation as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, attractive valuation levels, expanding profit margins, increase in stock price during the past year and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow. You can view the full Chimera Investment Corporation Ratings Report now.

Gap

Owners of Gap (NYSE: GPS) shares as of market close today will be eligible for a dividend of 20 cents per share. At a price of $39.08 as of 4:01 p.m. ET, the dividend yield is 2.1%.

The average volume for Gap has been 4.9 million shares per day over the past 30 days. Gap has a market cap of $17.3 billion and is part of the retail industry. Shares are up 24.4% year-to-date as of the close of trading on Monday.

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

The Gap, Inc. operates as an apparel retail company. It offers apparel, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, Athleta, and Intermix brands worldwide. The company has a P/E ratio of 13.79.

TheStreet Ratings rates Gap as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow. You can view the full Gap 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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