Tuesday's Ex-Dividends To Watch: STB, CLDT, CBT

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.

Tuesday, Tuesday, November 25, 2014, 75 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0% to 13.8%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tuesday:

Student Transportation

Owners of Student Transportation (NASDAQ: STB) shares, as of market close today, will be eligible for a dividend of 4 cents per share. At a price of $6.42 as of 3:59 p.m. ET, the dividend yield is 7.8%.

The average volume for Student Transportation has been 88,300 shares per day over the past 30 days. Student Transportation has a market cap of $529.8 million and is part of the transportation industry. Shares are up 3.1% year-to-date as of the close of trading on Thursday.

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

Student Transportation Inc. provides school bus transportation services in the United States and Canada. It operates through Transportation, and Oil and Gas segments. The company offers contracted, managed, special needs transportation, direct-to-parent, and charter services. The company has a P/E ratio of 318.50.

TheStreet Ratings rates Student Transportation as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, poor profit margins, feeble growth in its earnings per share and generally high debt management risk. You can view the full Student Transportation Ratings Report now.

Chatham Lodging

Owners of Chatham Lodging (NYSE: CLDT) shares, as of market close today, will be eligible for a dividend of 8 cents per share. At a price of $26.53 as of 4:03 p.m. ET, the dividend yield is 3.6%.

The average volume for Chatham Lodging has been 393,700 shares per day over the past 30 days. Chatham Lodging has a market cap of $906.7 million and is part of the real estate industry. Shares are up 31.1% year-to-date as of the close of trading on Thursday.

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

Chatham Lodging Trust was formed as a Maryland real estate investment trust (REIT) on October 26, 2009. The Company is internally-managed and was organized to invest primarily in premium-branded upscale extended-stay and select-service hotels. The company has a P/E ratio of 10.06.

TheStreet Ratings rates Chatham Lodging as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins. You can view the full Chatham Lodging Ratings Report now.

Cabot

Owners of Cabot (NYSE: CBT) shares, as of market close today, will be eligible for a dividend of 22 cents per share. At a price of $46.78 as of 4:04 p.m. ET, the dividend yield is 1.9%.

The average volume for Cabot has been 441,900 shares per day over the past 30 days. Cabot has a market cap of $2.9 billion and is part of the chemicals industry. Shares are down 9.9% year-to-date as of the close of trading on Thursday.

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

Cabot Corporation operates as a specialty chemicals and performance materials company. The company has a P/E ratio of 13.22.

TheStreet Ratings rates Cabot 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, reasonable valuation levels 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 Cabot 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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