Dividend Watch: 3 Stocks Going Ex-Dividend Tomorrow: AHH, HCC, BKU

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, Friday, June 27, 2014, 4:00 AM ET, 25 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.8% to 42.3%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Armada Hoffler Properties

Owners of Armada Hoffler Properties (NYSE: AHH) shares, as of market close today, will be eligible for a dividend of 16 cents per share. At a price of $9.77 as of 9:30 a.m. ET, the dividend yield is 6.6%.

The average volume for Armada Hoffler Properties has been 54,900 shares per day over the past 30 days. Armada Hoffler Properties has a market cap of $187.9 million and is part of the real estate industry. Shares are up 5.6% year-to-date as of the close of trading on Wednesday.

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The company has a P/E ratio of 25.03.

HCC Insurance Holdings

Owners of HCC Insurance Holdings (NYSE: HCC) shares, as of market close today, will be eligible for a dividend of 22 cents per share. At a price of $48.56 as of 9:30 a.m. ET, the dividend yield is 1.9%.

The average volume for HCC Insurance Holdings has been 310,400 shares per day over the past 30 days. HCC Insurance Holdings has a market cap of $4.8 billion and is part of the insurance industry. Shares are up 5.3% year-to-date as of the close of trading on Wednesday.

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HCC Insurance Holdings, Inc. underwrites non-correlated specialty insurance products worldwide. The company operates in five segments: U.S. Property & Casualty, Professional Liability, Accident & Health, U.S. Surety & Credit, and International. The U.S. The company has a P/E ratio of 11.84.

TheStreet Ratings rates HCC Insurance Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins. You can view the full HCC Insurance Holdings Ratings Report now.

BankUnited

Owners of BankUnited (NYSE: BKU) shares, as of market close today, will be eligible for a dividend of 21 cents per share. At a price of $34.22 as of 9:30 a.m. ET, the dividend yield is 2.5%.

The average volume for BankUnited has been 591,200 shares per day over the past 30 days. BankUnited has a market cap of $3.5 billion and is part of the banking industry. Shares are up 4.1% year-to-date as of the close of trading on Wednesday.

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BankUnited, Inc. operates as the bank holding company for BankUnited, National Association that provides a range of banking products services to commercial and middle-market businesses, and individual customers in the United States. The company has a P/E ratio of 16.50.

TheStreet Ratings rates BankUnited as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and feeble growth in the company's earnings per share. You can view the full BankUnited 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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