3 Stocks Going Ex-Dividend Tuesday: GGAL, HPY, XYL

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.

Tuesday, Tuesday, May 26, 2015, 13 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.3% to 7.9%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tuesday:

Grupo Financiero Galicia

Owners of Grupo Financiero Galicia (NASDAQ: GGAL) shares, as of market close today, will be eligible for a dividend of 8 cents per share. At a price of $21.83 as of 9:35 a.m. ET, the dividend yield is 0.3%.

The average volume for Grupo Financiero Galicia has been 517,300 shares per day over the past 30 days. Grupo Financiero Galicia has a market cap of $2.9 billion and is part of the banking industry. Shares are up 38.3% year-to-date as of the close of trading on Thursday.

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Grupo Financiero Galicia S.A. operates as a financial services holding company in Argentina. The company operates through Banking, Regional Credit Cards, CFA Personal Loans, and Insurance segments. The company has a P/E ratio of 11.00.

TheStreet Ratings rates Grupo Financiero Galicia as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins, increase in net income and growth in earnings per share. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. You can view the full Grupo Financiero Galicia Ratings Report now.

Heartland Payment Systems

Owners of Heartland Payment Systems (NYSE: HPY) shares, as of market close today, will be eligible for a dividend of 10 cents per share. At a price of $53.96 as of 9:36 a.m. ET, the dividend yield is 0.7%.

The average volume for Heartland Payment Systems has been 264,500 shares per day over the past 30 days. Heartland Payment Systems has a market cap of $2.0 billion and is part of the diversified services industry. Shares are down 0.2% year-to-date as of the close of trading on Thursday.

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Heartland Payment Systems, Inc. provides payment processing services in the United States. The company has a P/E ratio of 56.63.

TheStreet Ratings rates Heartland Payment Systems as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in net income, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. You can view the full Heartland Payment Systems Ratings Report now.

Xylem

Owners of Xylem (NYSE: XYL) shares, as of market close today, will be eligible for a dividend of 14 cents per share. At a price of $36.96 as of 9:36 a.m. ET, the dividend yield is 1.5%.

The average volume for Xylem has been 962,500 shares per day over the past 30 days. Xylem has a market cap of $6.7 billion and is part of the industrial industry. Shares are down 2.4% year-to-date as of the close of trading on Thursday.

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Xylem Inc. engages in the design, manufacture, and application of engineered technologies for the water and wastewater applications. The company operates in two segments, Water Infrastructure and Applied Water. The company has a P/E ratio of 19.27.

TheStreet Ratings rates Xylem as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself. You can view the full Xylem 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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