Tomorrow's Ex-Dividends To Watch: EFC, SSNC, ITC

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 28, 2015, 57 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.3% to 12.7%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Ellington Financial

Owners of Ellington Financial (NYSE: EFC) shares, as of market close today, will be eligible for a dividend of 65 cents per share. At a price of $20.53 as of 9:36 a.m. ET, the dividend yield is 12.7%.

The average volume for Ellington Financial has been 118,900 shares per day over the past 30 days. Ellington Financial has a market cap of $685.4 million and is part of the real estate industry. Shares are up 2.7% year-to-date as of the close of trading on Tuesday.

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Ellington Financial LLC, a specialty finance company, acquires and manages mortgage-related assets, including residential mortgage backed securities backed by prime jumbo, Alt-A, manufactured housing and subprime residential mortgage loans, and residential mortgage-backed securities. The company has a P/E ratio of 11.51.

TheStreet Ratings rates Ellington Financial as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself. You can view the full Ellington Financial Ratings Report now.

SS&C Technologies Holdings

Owners of SS&C Technologies Holdings (NASDAQ: SSNC) shares, as of market close today, will be eligible for a dividend of 12 cents per share. At a price of $59.16 as of 9:35 a.m. ET, the dividend yield is 0.8%.

The average volume for SS&C Technologies Holdings has been 302,400 shares per day over the past 30 days. SS&C Technologies Holdings has a market cap of $5.1 billion and is part of the computer software & services industry. Shares are up 1.4% year-to-date as of the close of trading on Tuesday.

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SS&C Technologies Holdings, Inc. provides software products and software-enabled services to financial services providers in North America, Europe, Asia, Australia, and Africa. The company has a P/E ratio of 40.05.

TheStreet Ratings rates SS&C Technologies Holdings 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, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow. You can view the full SS&C Technologies Holdings Ratings Report now.

ITC Holdings

Owners of ITC Holdings (NYSE: ITC) shares, as of market close today, will be eligible for a dividend of 16 cents per share. At a price of $35.84 as of 9:36 a.m. ET, the dividend yield is 1.8%.

The average volume for ITC Holdings has been 1.3 million shares per day over the past 30 days. ITC Holdings has a market cap of $5.6 billion and is part of the utilities industry. Shares are down 11% year-to-date as of the close of trading on Tuesday.

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ITC Holdings Corp., together with its subsidiaries, engages in the transmission of electricity in the United States. The company has a P/E ratio of 23.32.

TheStreet Ratings rates ITC Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, 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 ITC Holdings 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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