Ex-Dividends To Watch: 3 Stocks Going Ex-Dividend Tomorrow: SMG, AVY, GME

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, August 29, 2014, 17 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.3% to 6.2%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Scotts Miracle Gro

At a price of $59.49 as of 9:41 a.m. ET, the dividend yield is 3%.

The average volume for Scotts Miracle Gro has been 307,100 shares per day over the past 30 days. Scotts Miracle Gro has a market cap of $3.7 billion and is part of the chemicals industry. Shares are down 3.9% year-to-date as of the close of trading on Wednesday.

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

The Scotts Miracle-Gro Company is engaged in manufacturing, marketing, and selling consumer lawn and garden care products. The company has a P/E ratio of 23.20.

TheStreet Ratings rates Scotts Miracle Gro as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. You can view the full Scotts Miracle Gro Ratings Report now.

Avery Dennison

Owners of Avery Dennison (NYSE: AVY) shares, as of market close today, will be eligible for a dividend of 35 cents per share. At a price of $47.73 as of 9:41 a.m. ET, the dividend yield is 2.9%.

The average volume for Avery Dennison has been 664,200 shares per day over the past 30 days. Avery Dennison has a market cap of $4.5 billion and is part of the consumer durables industry. Shares are down 4.6% year-to-date as of the close of trading on Wednesday.

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

Avery Dennison Corporation produces and sells pressure-sensitive materials worldwide. It operates through Pressure-Sensitive Materials, and Retail Branding and Information Solutions segments. The company has a P/E ratio of 19.13.

TheStreet Ratings rates Avery Dennison as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. You can view the full Avery Dennison Ratings Report now.

GameStop

Owners of GameStop (NYSE: GME) shares, as of market close today, will be eligible for a dividend of 33 cents per share. At a price of $42.33 as of 9:41 a.m. ET, the dividend yield is 3.1%.

The average volume for GameStop has been 2.6 million shares per day over the past 30 days. GameStop has a market cap of $4.9 billion and is part of the retail industry. Shares are down 12.7% year-to-date as of the close of trading on Wednesday.

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

GameStop Corp. operates as a multichannel video game, consumer electronics, and wireless services retailer. The company has a P/E ratio of 13.20.

TheStreet Ratings rates GameStop 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, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins. You can view the full GameStop 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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