Ex-Dividend Alert: 4 Stocks Going Ex-Dividend Tuesday: GHI, ARDC, CODI, CVS

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Tuesday, Jan. 21, 2014, 8 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 1.6% to 8.5%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tuesday:

Global High Income Dollar Fund

Owners of Global High Income Dollar Fund (NYSE: GHI) shares as of market close today will be eligible for a dividend of 7 cents per share. At a price of $9.89 as of 9:31 a.m. ET, the dividend yield is 8%.

The average volume for Global High Income Dollar Fund has been 85,400 shares per day over the past 30 days. Global High Income Dollar Fund has a market cap of $214.2 million and is part of the financial services industry. Shares are down 0.2% year-to-date as of the close of trading on Thursday.

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Ares Dynamic Credit Allocation Fund

Owners of Ares Dynamic Credit Allocation Fund (NYSE: ARDC) shares as of market close today will be eligible for a dividend of 12 cents per share. At a price of $18.54 as of 9:30 a.m. ET, the dividend yield is 7.6%.

The average volume for Ares Dynamic Credit Allocation Fund has been 77,700 shares per day over the past 30 days. Ares Dynamic Credit Allocation Fund has a market cap of $317.9 million and is part of the financial services industry. Shares are up 3.4% year-to-date as of the close of trading on Thursday.

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Compass Diversified Holdings Shares of Bene

Owners of Compass Diversified Holdings Shares of Bene (NYSE: CODI) shares as of market close today will be eligible for a dividend of 36 cents per share. At a price of $19.62 as of 9:35 a.m. ET, the dividend yield is 7.5%.

The average volume for Compass Diversified Holdings Shares of Bene has been 113,700 shares per day over the past 30 days. Compass Diversified Holdings Shares of Bene has a market cap of $932.2 million and is part of the diversified services industry. Shares are down 0.4% year-to-date as of the close of trading on Thursday.

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Compass Diversified Holdings is a public investment firm specializing in acquiring controlling stakes in small to middle market companies. The firm seeks to make middle market and buyout investments. The company has a P/E ratio of 13.88.

TheStreet Ratings rates Compass Diversified Holdings Shares of Bene as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, revenue growth and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins. You can view the full Compass Diversified Holdings Shares of Bene Ratings Report now.

CVS Caremark

Owners of CVS Caremark (NYSE: CVS) shares as of market close today will be eligible for a dividend of 28 cents per share. At a price of $68.07 as of 9:35 a.m. ET, the dividend yield is 1.6%.

The average volume for CVS Caremark has been 5.3 million shares per day over the past 30 days. CVS Caremark has a market cap of $81.3 billion and is part of the retail industry. Shares are down 4.8% year-to-date as of the close of trading on Thursday.

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CVS Caremark Corporation, together with its subsidiaries, provides integrated pharmacy health care services in the United States. The company has a P/E ratio of 19.02.

TheStreet Ratings rates CVS Caremark as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income 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 CVS Caremark 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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