Tomorrow's Ex-Dividends To Watch: GGB, PACW, BC

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.

Tomorrow, Thursday, May 21, 2015, 23 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.1% to 10.3%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Gerdau

Owners of Gerdau (NYSE: GGB) shares, as of market close today, will be eligible for a dividend of 1 cent per share. At a price of $3.15 as of 9:36 a.m. ET, the dividend yield is 1.4%.

The average volume for Gerdau has been 5.7 million shares per day over the past 30 days. Gerdau has a market cap of $5.4 billion and is part of the metals & mining industry. Shares are down 12.1% year-to-date as of the close of trading on Tuesday.

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Gerdau S.A. produces and commercializes steel products worldwide. It operates through Brazil, North America, Latin America, Special Steel, and Iron Ore segments. The company has a P/E ratio of 2.66.

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

PacWest Bancorp

Owners of PacWest Bancorp (NASDAQ: PACW) shares, as of market close today, will be eligible for a dividend of 50 cents per share. At a price of $46.18 as of 9:37 a.m. ET, the dividend yield is 4.3%.

The average volume for PacWest Bancorp has been 740,800 shares per day over the past 30 days. PacWest Bancorp has a market cap of $4.8 billion and is part of the banking industry. Shares are up 1.8% year-to-date as of the close of trading on Tuesday.

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PacWest Bancorp operates as the holding company for Pacific Western Bank that provides commercial banking products and services to individuals, professionals, and small to mid-sized businesses in the United States. It accepts demand, money market, and time deposits. The company has a P/E ratio of 22.24.

TheStreet Ratings rates PacWest Bancorp as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity. You can view the full PacWest Bancorp Ratings Report now.

Brunswick

Owners of Brunswick (NYSE: BC) shares, as of market close today, will be eligible for a dividend of 12 cents per share. At a price of $52.66 as of 9:36 a.m. ET, the dividend yield is 0.9%.

The average volume for Brunswick has been 978,000 shares per day over the past 30 days. Brunswick has a market cap of $5.0 billion and is part of the consumer durables industry. Shares are up 3.3% year-to-date as of the close of trading on Tuesday.

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Brunswick Corporation designs, manufactures, and markets recreation products in the United States and internationally. The company has a P/E ratio of 25.19.

TheStreet Ratings rates Brunswick as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins. You can view the full Brunswick 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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