Dividend Watch: 3 Stocks Going Ex-Dividend Tomorrow: NGPC, ARI, PWE

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, September 26, 2014, 118 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0% to 36.3%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

NGP Capital Resources Company

Owners of NGP Capital Resources Company (NASDAQ: NGPC) shares, as of market close today, will be eligible for a dividend of 16 cents per share. At a price of $6.50 as of 9:34 a.m. ET, the dividend yield is 9.8%.

The average volume for NGP Capital Resources Company has been 89,800 shares per day over the past 30 days. NGP Capital Resources Company has a market cap of $133.2 million and is part of the financial services industry. Shares are down 12.6% 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.

NGP Capital Resources Company is a business development company specializing in investments in small and mid size and middle market companies. The company has a P/E ratio of 81.25.

TheStreet Ratings rates NGP Capital Resources Company as a hold. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, 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 NGP Capital Resources Company Ratings Report now.

Apollo Commercial Real Estate Finance

Owners of Apollo Commercial Real Estate Finance (NYSE: ARI) shares, as of market close today, will be eligible for a dividend of 40 cents per share. At a price of $16.36 as of 9:41 a.m. ET, the dividend yield is 9.8%.

The average volume for Apollo Commercial Real Estate Finance has been 335,900 shares per day over the past 30 days. Apollo Commercial Real Estate Finance has a market cap of $768.3 million and is part of the real estate industry. Shares are up 0.6% 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.

Apollo Commercial Real Estate Finance, Inc. The company has a P/E ratio of 10.19.

TheStreet Ratings rates Apollo Commercial Real Estate Finance as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, good cash flow from operations, compelling growth in net income and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. You can view the full Apollo Commercial Real Estate Finance Ratings Report now.

Penn West Petroleum

Owners of Penn West Petroleum (NYSE: PWE) shares, as of market close today, will be eligible for a dividend of 13 cents per share. At a price of $7.06 as of 9:41 a.m. ET, the dividend yield is 7.1%.

The average volume for Penn West Petroleum has been 2.3 million shares per day over the past 30 days. Penn West Petroleum has a market cap of $3.6 billion and is part of the energy industry. Shares are down 14.9% 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.

Penn West Petroleum Ltd., an exploration and production company, acquires, explores, develops, exploits, and holds interests in petroleum and natural gas properties and related assets in western Canada.

TheStreet Ratings rates Penn West Petroleum as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, feeble growth in its earnings per share and generally disappointing historical performance in the stock itself. You can view the full Penn West Petroleum 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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