Ex-Dividend Alert: 3 Stocks Going Ex-Dividend Tomorrow: BGCP, PDS, GXP

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, Tuesday, Feb. 25, 2014, 5:00 AM ET, 5 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 1.8% to 6.8%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

BGC Partners

Owners of BGC Partners (NASDAQ: BGCP) shares as of market close today will be eligible for a dividend of 12 cents per share. At a price of $7.04 as of 9:39 a.m. ET, the dividend yield is 6.8%.

The average volume for BGC Partners has been 1.2 million shares per day over the past 30 days. BGC Partners has a market cap of $1.3 billion and is part of the financial services industry. Shares are up 15.9% 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.

BGC Partners, Inc. operates as a brokerage company, primarily servicing the wholesale financial and real estate markets. It operates through two segments, Financial Services and Real Estate Services. The company has a P/E ratio of 15.93.

TheStreet Ratings rates BGC Partners as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins. You can view the full BGC Partners Ratings Report now.

Precision Drilling

Owners of Precision Drilling (NYSE: PDS) shares as of market close today will be eligible for a dividend of 5 cents per share. At a price of $10.94 as of 9:40 a.m. ET, the dividend yield is 2%.

The average volume for Precision Drilling has been 1.7 million shares per day over the past 30 days. Precision Drilling has a market cap of $3.0 billion and is part of the energy industry. Shares are up 14.6% 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.

Precision Drilling Corporation provides oil and natural gas drilling and drilling-related services and products to oil and natural gas exploration and production companies in North America. The company has a P/E ratio of 537.00.

TheStreet Ratings rates Precision Drilling as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and solid stock price performance. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall. You can view the full Precision Drilling Ratings Report now.

Great Plains Energy

Owners of Great Plains Energy (NYSE: GXP) shares as of market close today will be eligible for a dividend of 23 cents per share. At a price of $26.21 as of 9:40 a.m. ET, the dividend yield is 3.5%.

The average volume for Great Plains Energy has been 1.0 million shares per day over the past 30 days. Great Plains Energy has a market cap of $4.0 billion and is part of the utilities industry. Shares are up 7.9% 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.

Great Plains Energy Incorporated, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity. It also provides regulated steam services in St. Joseph, Missouri. The company has a P/E ratio of 17.09.

TheStreet Ratings rates Great Plains Energy as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in stock price during the past year, expanding profit margins 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 Great Plains Energy 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

Deutsche Bank Plans 'Significant' Job Cuts as Q1 Profits Slump

Deutsche Bank Plans 'Significant' Job Cuts as Q1 Profits Slump

Boeing Is Back to Cruising Altitude; GM Gets Assist From Amazon -- ICYMI

Boeing Is Back to Cruising Altitude; GM Gets Assist From Amazon -- ICYMI

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer

Aceto's Search for Deal May Be Slowed by DOJ Subpoena

Aceto's Search for Deal May Be Slowed by DOJ Subpoena

Dow and S&P 500 Finish Higher Amid Strong Corporate Earnings

Dow and S&P 500 Finish Higher Amid Strong Corporate Earnings