Dividend Watch: 3 Stocks Going Ex-Dividend Tomorrow: SJT, HLSS, DST

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, May 28, 2014, 4:00 AM ET, 94 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.2% to 13.1%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

San Juan Basin Royalty

Owners of San Juan Basin Royalty (NYSE: SJT) shares as of market close today will be eligible for a dividend of 14 cents per share. At a price of $19.08 as of 9:40 a.m. ET, the dividend yield is 8.8%.

The average volume for San Juan Basin Royalty has been 91,600 shares per day over the past 30 days. San Juan Basin Royalty has a market cap of $882.8 million and is part of the energy industry. Shares are up 13.1% 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.

San Juan Basin Royalty Trust operates as an express trust. The company has a 75% net overriding royalty interest carved out of Burlington's oil and gas leasehold interests (the underlying properties) in properties located in the San Juan Basin in northwestern New Mexico. The company has a P/E ratio of 18.75.

TheStreet Ratings rates San Juan Basin Royalty as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. You can view the full San Juan Basin Royalty Ratings Report now.

Home Loan Servicing Solutions

Owners of Home Loan Servicing Solutions (NASDAQ: HLSS) shares as of market close today will be eligible for a dividend of 16 cents per share. At a price of $22.14 as of 9:46 a.m. ET, the dividend yield is 8.7%.

The average volume for Home Loan Servicing Solutions has been 627,500 shares per day over the past 30 days. Home Loan Servicing Solutions has a market cap of $1.6 billion and is part of the real estate industry. Shares are down 3.9% 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.

Home Loan Servicing Solutions, Ltd., through its subsidiaries, engages in the acquisition of mortgage servicing assets. Its mortgage servicing assets consists of servicing advances, mortgage servicing rights, rights to mortgage servicing rights, and other related assets. The company has a P/E ratio of 10.22.

TheStreet Ratings rates Home Loan Servicing Solutions as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself. You can view the full Home Loan Servicing Solutions Ratings Report now.

DST Systems

Owners of DST Systems (NYSE: DST) shares as of market close today will be eligible for a dividend of 30 cents per share. At a price of $90.94 as of 9:45 a.m. ET, the dividend yield is 1.3%.

The average volume for DST Systems has been 371,100 shares per day over the past 30 days. DST Systems has a market cap of $3.8 billion and is part of the computer software & services industry. Shares are down 0% 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.

DST Systems, Inc. provides information processing and software services and products primarily in the United States, the United Kingdom, Canada, and Australia. The company has a P/E ratio of 10.89.

TheStreet Ratings rates DST Systems as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins. You can view the full DST 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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