Ex-Dividends To Watch: 3 Stocks Going Ex-Dividend Tomorrow: CCOI, EAT, SLM

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, March 5, 2014, 5:00 AM ET, 37 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.1% to 10.7%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Cogent Communications Group

Owners of Cogent Communications Group (NASDAQ: CCOI) shares as of market close today will be eligible for a dividend of 39 cents per share. At a price of $38.18 as of 9:35 a.m. ET, the dividend yield is 1.7%.

The average volume for Cogent Communications Group has been 414,500 shares per day over the past 30 days. Cogent Communications Group has a market cap of $1.8 billion and is part of the telecommunications industry. Shares are down 6.2% 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.

Cogent Communications Group, Inc. provides high-speed Internet access, Internet protocol, and communications services primarily to small and medium-sized businesses, communications service providers, and other bandwidth-intensive organizations in North America, Europe, and Japan. The company has a P/E ratio of 31.69.

TheStreet Ratings rates Cogent Communications Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, compelling growth in net income and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. You can view the full Cogent Communications Group Ratings Report now.

Brinker International

Owners of Brinker International (NYSE: EAT) shares as of market close today will be eligible for a dividend of 24 cents per share. At a price of $54.62 as of 9:35 a.m. ET, the dividend yield is 1.8%.

The average volume for Brinker International has been 956,500 shares per day over the past 30 days. Brinker International has a market cap of $3.7 billion and is part of the leisure industry. Shares are up 15.7% 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.

Brinker International, Inc. owns, develops, operates, and franchises full-service casual dining restaurants under the Chili's Grill & Bar and Maggiano's Little Italy brands primarily in the United States. The company has a P/E ratio of 23.50.

TheStreet Ratings rates Brinker International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. You can view the full Brinker International Ratings Report now.

SLM

Owners of SLM (NASDAQ: SLM) shares as of market close today will be eligible for a dividend of 15 cents per share. At a price of $24.30 as of 9:35 a.m. ET, the dividend yield is 2.5%.

The average volume for SLM has been 4.4 million shares per day over the past 30 days. SLM has a market cap of $10.3 billion and is part of the financial services industry. Shares are down 8.7% 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.

SLM Corporation, also known as Sallie Mae, originates, acquires, finances, and services private education loans to parents and graduate students in the United States. The company has a P/E ratio of 8.28.

TheStreet Ratings rates SLM as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels, expanding profit margins 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 SLM 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

Dow Rises Sharply as U.S.-China Trade Tensions Thaw

Dow Rises Sharply as U.S.-China Trade Tensions Thaw

Apple Shares Gain as U.S. and China Call Off Trade War, For Now

Apple Shares Gain as U.S. and China Call Off Trade War, For Now

GE Confirms $11.1 Billion Transportation Merger With Wabtec

GE Confirms $11.1 Billion Transportation Merger With Wabtec

Treasury Secretary Mnuchin: 'Take the Over' on U.S. GDP Topping 3% This Year

Treasury Secretary Mnuchin: 'Take the Over' on U.S. GDP Topping 3% This Year

Video: Why the Stock Market Is Discounting China Trade Fears for Now

Video: Why the Stock Market Is Discounting China Trade Fears for Now