Ex-Dividends To Watch: 3 Stocks Going Ex-Dividend Tomorrow: QRE, GRFS, CNI

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, June 5, 2014, 4:00 AM ET, 23 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.1% to 10.9%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

QR Energy

Owners of QR Energy (NYSE: QRE) shares as of market close today will be eligible for a dividend of 16 cents per share. At a price of $17.72 as of 9:35 a.m. ET, the dividend yield is 10.9%.

The average volume for QR Energy has been 296,800 shares per day over the past 30 days. QR Energy has a market cap of $1.0 billion and is part of the energy industry. Shares are up 3.3% year-to-date as of the close of trading on Tuesday.

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QR Energy, LP, through its subsidiary, QRE Operating, LLC, is engaged in the acquisition, exploitation, development, and production of oil and natural gas properties in the United States.

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

Grifols

Owners of Grifols (NASDAQ: GRFS) shares as of market close today will be eligible for a dividend of 21 cents per share. At a price of $41.97 as of 9:36 a.m. ET, the dividend yield is 0.5%.

The average volume for Grifols has been 587,000 shares per day over the past 30 days. Grifols has a market cap of $14.1 billion and is part of the drugs industry. Shares are up 16.2% year-to-date as of the close of trading on Tuesday.

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Grifols, S.A., a specialty biopharmaceutical company, develops, manufactures, and distributes a range of plasma derivative products primarily in the European Union, Spain, the United States, Canada, and internationally. The company has a P/E ratio of 40.55.

TheStreet Ratings rates Grifols as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet. You can view the full Grifols Ratings Report now.

Canadian National Railway

Owners of Canadian National Railway (NYSE: CNI) shares as of market close today will be eligible for a dividend of 23 cents per share. At a price of $60.45 as of 9:36 a.m. ET, the dividend yield is 1.5%.

The average volume for Canadian National Railway has been 816,800 shares per day over the past 30 days. Canadian National Railway has a market cap of $50.1 billion and is part of the transportation industry. Shares are up 6.8% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Canadian National Railway Company, together with its subsidiaries, engages in rail and related transportation business in North America. The company has a P/E ratio of 20.97.

TheStreet Ratings rates Canadian National Railway as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, good cash flow from operations, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. 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 Canadian National Railway 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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