Monday's Ex-Dividends To Watch: CXW, TWO, AEO

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.

Monday, Monday, June 30, 2014, 4:00 AM ET, 9 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 1.7% to 9.9%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Monday:

Corrections Corp of America

Owners of Corrections Corp of America (NYSE: CXW) shares, as of market close today, will be eligible for a dividend of 51 cents per share. At a price of $33.63 as of 9:45 a.m. ET, the dividend yield is 6.1%.

The average volume for Corrections Corp of America has been 585,700 shares per day over the past 30 days. Corrections Corp of America has a market cap of $3.9 billion and is part of the real estate industry. Shares are up 4.6% year-to-date as of the close of trading on Thursday.

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

Corrections Corporation of America, together with its subsidiaries, owns and operates privatized correctional and detention facilities in the United States. The company has a P/E ratio of 24.06.

TheStreet Ratings rates Corrections Corp of America as a buy. Among the primary strengths of the company is its reasonable valuation levels, considering its current price compared to earnings, book value and other measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income. You can view the full Corrections Corp of America Ratings Report now.

Two Harbors Investment

Owners of Two Harbors Investment (NYSE: TWO) shares, as of market close today, will be eligible for a dividend of 26 cents per share. At a price of $10.71 as of 9:46 a.m. ET, the dividend yield is 9.9%.

The average volume for Two Harbors Investment has been 3.4 million shares per day over the past 30 days. Two Harbors Investment has a market cap of $3.8 billion and is part of the real estate industry. Shares are up 15.1% year-to-date as of the close of trading on Thursday.

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

Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), residential mortgage loans, mortgage servicing rights, and other financial assets. The company has a P/E ratio of 9.63.

TheStreet Ratings rates Two Harbors Investment as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share. You can view the full Two Harbors Investment Ratings Report now.

American Eagle Outfitters

Owners of American Eagle Outfitters (NYSE: AEO) shares, as of market close today, will be eligible for a dividend of 12 cents per share. At a price of $11.60 as of 9:46 a.m. ET, the dividend yield is 4.3%.

The average volume for American Eagle Outfitters has been 4.9 million shares per day over the past 30 days. American Eagle Outfitters has a market cap of $2.3 billion and is part of the retail industry. Shares are down 20.2% year-to-date as of the close of trading on Thursday.

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

American Eagle Outfitters, Inc. operates as a specialty retailer of clothing, accessories, and personal care products in the United States and internationally. The company has a P/E ratio of 37.65.

TheStreet Ratings rates American Eagle Outfitters as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity. You can view the full American Eagle Outfitters 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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