3 Stocks With Upcoming Ex-Dividend Dates: SEM, ALSN, LXK

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, Thursday, Feb. 27, 2014, 5:00 AM ET, 49 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.2% to 14.8%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Select Medical Holdings Corporation

Owners of Select Medical Holdings Corporation (NYSE: SEM) shares as of market close today will be eligible for a dividend of 10 cents per share. At a price of $11.03 as of 9:40 a.m. ET, the dividend yield is 3.6%.

The average volume for Select Medical Holdings Corporation has been 1.2 million shares per day over the past 30 days. Select Medical Holdings Corporation has a market cap of $1.5 billion and is part of the health services industry. Shares are down 5.7% year-to-date as of the close of trading on Tuesday.

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Select Medical Holdings Corporation, through its subsidiary, Select Medical Corporation, operates specialty hospitals and outpatient rehabilitation clinics in the United States. It operates in two segments, Specialty Hospitals and Outpatient Rehabilitation. The company has a P/E ratio of 12.32.

TheStreet Ratings rates Select Medical Holdings Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. You can view the full Select Medical Holdings Corporation Ratings Report now.

Allison Transmission Holdings

Owners of Allison Transmission Holdings (NYSE: ALSN) shares as of market close today will be eligible for a dividend of 12 cents per share. At a price of $29.50 as of 9:39 a.m. ET, the dividend yield is 1.6%.

The average volume for Allison Transmission Holdings has been 788,500 shares per day over the past 30 days. Allison Transmission Holdings has a market cap of $5.6 billion and is part of the automotive industry. Shares are up 6.5% year-to-date as of the close of trading on Tuesday.

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Allison Transmission Holdings, Inc. designs and manufactures automatic transmissions for medium- and heavy-duty commercial vehicles, and medium- and heavy-tactical U.S. military vehicles. The company has a P/E ratio of 34.66.

TheStreet Ratings rates Allison Transmission Holdings as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and disappointing return on equity. You can view the full Allison Transmission Holdings Ratings Report now.

Lexmark International

Owners of Lexmark International (NYSE: LXK) shares as of market close today will be eligible for a dividend of 30 cents per share. At a price of $42.71 as of 9:40 a.m. ET, the dividend yield is 2.8%.

The average volume for Lexmark International has been 1.1 million shares per day over the past 30 days. Lexmark International has a market cap of $2.6 billion and is part of the computer hardware industry. Shares are up 20.3% year-to-date as of the close of trading on Tuesday.

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Lexmark International, Inc. develops, manufactures, and supplies printing and imaging solutions for offices. It offers laser printers, inkjet printers, and multifunction devices, as well as cartridges and other supplies, services, and solutions. The company has a P/E ratio of 10.08.

TheStreet Ratings rates Lexmark International as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, revenue growth, attractive valuation levels and expanding profit margins. 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 Lexmark International 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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