Tomorrow's Ex-Dividends To Watch: KNX, FTR, CCE

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:

Knight Transportation

Owners of Knight Transportation (NYSE: KNX) shares as of market close today will be eligible for a dividend of 6 cents per share. At a price of $21.57 as of 9:35 a.m. ET, the dividend yield is 1.1%.

The average volume for Knight Transportation has been 697,800 shares per day over the past 30 days. Knight Transportation has a market cap of $1.7 billion and is part of the transportation industry. Shares are up 15.8% 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.

Knight Transportation, Inc., together with its subsidiaries, operates as a short to medium-haul truckload carrier of general commodities primarily in the United States. The company has a P/E ratio of 24.98.

TheStreet Ratings rates Knight Transportation 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, revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. You can view the full Knight Transportation Ratings Report now.

Frontier Communications

Owners of Frontier Communications (NASDAQ: FTR) shares as of market close today will be eligible for a dividend of 10 cents per share. At a price of $4.92 as of 9:35 a.m. ET, the dividend yield is 8.2%.

The average volume for Frontier Communications has been 10.3 million shares per day over the past 30 days. Frontier Communications has a market cap of $4.9 billion and is part of the telecommunications industry. Shares are up 5.4% 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.

Frontier Communications Corporation, a communications company, provides regulated and unregulated voice, data, and video services to business, residential, and wholesale customers in the United States. The company has a P/E ratio of 44.36.

TheStreet Ratings rates Frontier Communications as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and generally higher debt management risk. You can view the full Frontier Communications Ratings Report now.

Coca-Cola

Owners of Coca-Cola (NYSE: CCE) shares as of market close today will be eligible for a dividend of 25 cents per share. At a price of $46.75 as of 9:35 a.m. ET, the dividend yield is 2.1%.

The average volume for Coca-Cola has been 1.9 million shares per day over the past 30 days. Coca-Cola has a market cap of $12.0 billion and is part of the food & beverage industry. Shares are up 5.2% 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.

Coca-Cola Enterprises, Inc. produces, distributes, and markets nonalcoholic beverages. It provides still and sparkling waters, flavored waters, juice and juice drinks, sports drinks, energy drinks, teas, and coffees. The company has a P/E ratio of 19.30.

TheStreet Ratings rates Coca-Cola 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, growth in earnings per share 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 Coca-Cola 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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