Ex-Dividends To Watch: 3 Stocks Going Ex-Dividend Tomorrow: CATY, TER, IPG

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, Friday, May 29, 2015, 11 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 1.2% to 8.1%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Cathay General Bancorp

Owners of Cathay General Bancorp (NASDAQ: CATY) shares, as of market close today, will be eligible for a dividend of 14 cents per share. At a price of $30.44 as of 9:35 a.m. ET, the dividend yield is 1.9%.

The average volume for Cathay General Bancorp has been 390,900 shares per day over the past 30 days. Cathay General Bancorp has a market cap of $2.4 billion and is part of the banking industry. Shares are up 19.4% year-to-date as of the close of trading on Wednesday.

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Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services for individuals, professionals, and small to medium-sized businesses in the United States. The company has a P/E ratio of 16.80.

TheStreet Ratings rates Cathay General Bancorp as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income, expanding profit margins, good cash flow from operations and solid stock price performance. 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 Cathay General Bancorp Ratings Report now.

Teradyne

Owners of Teradyne (NYSE: TER) shares, as of market close today, will be eligible for a dividend of 6 cents per share. At a price of $21.19 as of 9:37 a.m. ET, the dividend yield is 1.2%.

The average volume for Teradyne has been 2.0 million shares per day over the past 30 days. Teradyne has a market cap of $4.4 billion and is part of the electronics industry. Shares are up 6.9% year-to-date as of the close of trading on Wednesday.

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Teradyne, Inc. provides automatic test equipment worldwide. The company has a P/E ratio of 39.54.

TheStreet Ratings rates Teradyne 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, increase in net income, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity. You can view the full Teradyne Ratings Report now.

Interpublic Group of Companies

Owners of Interpublic Group of Companies (NYSE: IPG) shares, as of market close today, will be eligible for a dividend of 12 cents per share. At a price of $20.65 as of 9:36 a.m. ET, the dividend yield is 2.3%.

The average volume for Interpublic Group of Companies has been 3.7 million shares per day over the past 30 days. Interpublic Group of Companies has a market cap of $8.5 billion and is part of the media industry. Shares are down 0.1% year-to-date as of the close of trading on Wednesday.

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The Interpublic Group of Companies, Inc. provides advertising and marketing services. The company operates in two segments, Integrated Agency Networks and Constituency Management Group. The company has a P/E ratio of 17.65.

TheStreet Ratings rates Interpublic Group of Companies as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, revenue growth, notable return on equity and attractive valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow. You can view the full Interpublic Group of Companies 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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