Tomorrow's Ex-Dividends To Watch: IAF, PGH, FRT

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, September 18, 2014, 25 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.5% to 13.1%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Aberdeen Australia Equity Fund

Owners of Aberdeen Australia Equity Fund (AMEX: IAF) shares, as of market close today, will be eligible for a dividend of 22 cents per share. At a price of $8.57 as of 9:30 a.m. ET, the dividend yield is 10.3%.

The average volume for Aberdeen Australia Equity Fund has been 55,000 shares per day over the past 30 days. Aberdeen Australia Equity Fund has a market cap of $196.7 million and is part of the financial services industry. Shares are up 2.2% 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.

The company has a P/E ratio of 23.19.

Pengrowth Energy

Owners of Pengrowth Energy (NYSE: PGH) shares, as of market close today, will be eligible for a dividend of 4 cents per share. At a price of $5.77 as of 9:36 a.m. ET, the dividend yield is 7.5%.

The average volume for Pengrowth Energy has been 1.2 million shares per day over the past 30 days. Pengrowth Energy has a market cap of $3.1 billion and is part of the energy industry. Shares are down 6.5% 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.

Pengrowth Energy Corporation, together with its subsidiaries, acquires, explores for, develops, and produces oil and natural gas reserves in the provinces of Alberta, British Columbia, Saskatchewan, and Nova Scotia in Canada.

TheStreet Ratings rates Pengrowth Energy as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself. You can view the full Pengrowth Energy Ratings Report now.

Federal Realty Investment

Owners of Federal Realty Investment (NYSE: FRT) shares, as of market close today, will be eligible for a dividend of 87 cents per share. At a price of $120.99 as of 9:35 a.m. ET, the dividend yield is 2.9%.

The average volume for Federal Realty Investment has been 305,100 shares per day over the past 30 days. Federal Realty Investment has a market cap of $8.1 billion and is part of the real estate industry. Shares are up 18.9% 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.

Federal Realty Investment Trust operates as a real estate investment trust, which engages in the ownership, management, development, and redevelopment of retail and mixed-use properties. The company has a P/E ratio of 54.11.

TheStreet Ratings rates Federal Realty Investment as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. You can view the full Federal Realty Investment 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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