Tomorrow's Ex-Dividends To Watch: HEES, ATO, SNA

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, August 21, 2014, 18 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.1% to 9.6%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

H&E Equipment Services

Owners of H&E Equipment Services (NASDAQ: HEES) shares, as of market close today, will be eligible for a dividend of 25 cents per share. At a price of $39.02 as of 9:35 a.m. ET, the dividend yield is 2.5%.

The average volume for H&E Equipment Services has been 236,700 shares per day over the past 30 days. H&E Equipment Services has a market cap of $1.4 billion and is part of the diversified services industry. Shares are up 32.9% 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.

H&E Equipment Services, Inc. operates as an integrated equipment services company. The company rents, sells, and provides parts and service support for hi-lift or aerial work platform equipment, crane, earthmoving equipment, and industrial lift truck categories. The company has a P/E ratio of 26.68.

TheStreet Ratings rates H&E Equipment Services as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and expanding profit margins. 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 H&E Equipment Services Ratings Report now.

Atmos Energy

Owners of Atmos Energy (NYSE: ATO) shares, as of market close today, will be eligible for a dividend of 37 cents per share. At a price of $50.43 as of 9:35 a.m. ET, the dividend yield is 3%.

The average volume for Atmos Energy has been 465,500 shares per day over the past 30 days. Atmos Energy has a market cap of $5.0 billion and is part of the utilities industry. Shares are up 11.3% 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.

Atmos Energy Corporation, together with its subsidiaries, is engaged in the distribution, transmission, and storage of natural gas in the United States. It operates in three segments: Natural Gas Distribution, Regulated Transmission and Storage, and Nonregulated. The company has a P/E ratio of 17.58.

TheStreet Ratings rates Atmos Energy as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, impressive record of earnings per share growth, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins. You can view the full Atmos Energy Ratings Report now.

Snap-on

Owners of Snap-on (NYSE: SNA) shares, as of market close today, will be eligible for a dividend of 44 cents per share. At a price of $125.62 as of 9:36 a.m. ET, the dividend yield is 1.4%.

The average volume for Snap-on has been 305,600 shares per day over the past 30 days. Snap-on has a market cap of $7.3 billion and is part of the industrial industry. Shares are up 14.6% 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.

Snap-on Incorporated manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions for professional users worldwide. The company has a P/E ratio of 19.38.

TheStreet Ratings rates Snap-on 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. You can view the full Snap-on 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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