Dividend Watch: 3 Stocks Going Ex-Dividend Tomorrow: NYMT, NRZ, MFA

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 25, 2014, 10 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 1.3% to 13.7%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

New York Mortgage

Owners of New York Mortgage (NASDAQ: NYMT) shares, as of market close today, will be eligible for a dividend of 27 cents per share. At a price of $7.80 as of 9:39 a.m. ET, the dividend yield is 13.7%.

The average volume for New York Mortgage has been 922,200 shares per day over the past 30 days. New York Mortgage has a market cap of $713.7 million and is part of the real estate industry. Shares are up 11.4% 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.

New York Mortgage Trust, Inc., a real estate investment trust (REIT), is engaged in acquiring, investing in, financing, and managing mortgage-related and financial assets in the United States. The company has a P/E ratio of 6.30.

TheStreet Ratings rates New York Mortgage as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins. You can view the full New York Mortgage Ratings Report now.

New Residential Investment

Owners of New Residential Investment (NYSE: NRZ) shares, as of market close today, will be eligible for a dividend of 18 cents per share. At a price of $6.12 as of 9:41 a.m. ET, the dividend yield is 11.3%.

The average volume for New Residential Investment has been 1.7 million shares per day over the past 30 days. New Residential Investment has a market cap of $1.7 billion and is part of the real estate industry. Shares are down 8.7% 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.

New Residential Investment Corp., a real estate investment trust, focuses on investing in residential mortgage related assets. It operates through Servicing Related Assets, Residential Securities and Loans, and Other Investments segments. The company has a P/E ratio of 5.20.

TheStreet Ratings rates New Residential Investment as a sell. Among the areas we feel are negative, one of the most important has been the company's poor growth in earnings per share. You can view the full New Residential Investment Ratings Report now.

MFA Financial

Owners of MFA Financial (NYSE: MFA) shares, as of market close today, will be eligible for a dividend of 20 cents per share. At a price of $8.05 as of 9:40 a.m. ET, the dividend yield is 9.9%.

The average volume for MFA Financial has been 1.7 million shares per day over the past 30 days. MFA Financial has a market cap of $3.0 billion and is part of the real estate industry. Shares are up 13.7% 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.

MFA Financial, Inc., a real estate investment trust (REIT), invests in residential agency and non-agency mortgage-backed securities (MBS). The company has a P/E ratio of 33.67.

TheStreet Ratings rates MFA Financial as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and feeble growth in the company's earnings per share. You can view the full MFA Financial 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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