Tomorrow's Ex-Dividends To Watch: AT, BWC, FDS

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, Wednesday, Feb. 26, 2014, 5:00 AM ET, 79 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.1% to 14.1%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Atlantic Power Corporation

Owners of Atlantic Power Corporation (NYSE: AT) shares as of market close today will be eligible for a dividend of 3 cents per share. At a price of $2.67 as of 9:34 a.m. ET, the dividend yield is 14.1%.

The average volume for Atlantic Power Corporation has been 1.5 million shares per day over the past 30 days. Atlantic Power Corporation has a market cap of $311.3 million and is part of the utilities industry. Shares are down 23.9% 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.

Atlantic Power Corporation operates as a power generation and infrastructure company with a portfolio of assets in the United States and Canada.

TheStreet Ratings rates Atlantic Power Corporation as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk and generally disappointing historical performance in the stock itself. You can view the full Atlantic Power Corporation Ratings Report now.

Babcock & Wilcox

Owners of Babcock & Wilcox (NYSE: BWC) shares as of market close today will be eligible for a dividend of 10 cents per share. At a price of $35.18 as of 9:34 a.m. ET, the dividend yield is 1.1%.

The average volume for Babcock & Wilcox has been 604,500 shares per day over the past 30 days. Babcock & Wilcox has a market cap of $3.9 billion and is part of the industrial industry. Shares are up 2% 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 Babcock & Wilcox Company operates as a specialty constructor of nuclear components for various customers in the power and other steam-using industries worldwide. The company has a P/E ratio of 18.11.

TheStreet Ratings rates Babcock & Wilcox as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. You can view the full Babcock & Wilcox Ratings Report now.

FactSet Research Systems

Owners of FactSet Research Systems (NYSE: FDS) shares as of market close today will be eligible for a dividend of 35 cents per share. At a price of $105.67 as of 9:33 a.m. ET, the dividend yield is 1.3%.

The average volume for FactSet Research Systems has been 378,000 shares per day over the past 30 days. FactSet Research Systems has a market cap of $4.5 billion and is part of the computer software & services industry. Shares are down 3.3% 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.

FactSet Research Systems Inc. provides integrated financial information and analytical applications to investment community in the United States, Europe, and the Asia Pacific. The company has a P/E ratio of 23.13.

TheStreet Ratings rates FactSet Research Systems 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, growth in earnings per share and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. You can view the full FactSet Research Systems 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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