3 Stocks Going Ex-Dividend Tomorrow: EARN, ARI, PEB

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, June 26, 2015, 128 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.2% to 35.1%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Ellington Residential Mortgage REIT

Owners of Ellington Residential Mortgage REIT (NYSE: EARN) shares, as of market close today, will be eligible for a dividend of 55 cents per share. At a price of $15.42 as of 9:35 a.m. ET, the dividend yield is 14.2%.

The average volume for Ellington Residential Mortgage REIT has been 36,900 shares per day over the past 30 days. Ellington Residential Mortgage REIT has a market cap of $141.4 million and is part of the real estate industry. Shares are down 5% year-to-date as of the close of trading on Wednesday.

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Ellington Residential Mortgage REIT, a real estate investment trust, specializes in acquiring, investing in, and managing residential mortgage-and real estate-related assets. The company has a P/E ratio of 8.27.

TheStreet Ratings rates Ellington Residential Mortgage REIT as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself. You can view the full Ellington Residential Mortgage REIT Ratings Report now.

Apollo Commercial Real Estate Finance

Owners of Apollo Commercial Real Estate Finance (NYSE: ARI) shares, as of market close today, will be eligible for a dividend of 44 cents per share. At a price of $17.32 as of 9:36 a.m. ET, the dividend yield is 10.1%.

The average volume for Apollo Commercial Real Estate Finance has been 456,200 shares per day over the past 30 days. Apollo Commercial Real Estate Finance has a market cap of $1.0 billion and is part of the real estate industry. Shares are up 6.7% year-to-date as of the close of trading on Wednesday.

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Apollo Commercial Real Estate Finance, Inc. The company has a P/E ratio of 9.86.

TheStreet Ratings rates Apollo Commercial Real Estate Finance as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, compelling growth in net income, attractive valuation levels and expanding profit margins. 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 Apollo Commercial Real Estate Finance Ratings Report now.

Pebblebrook Hotel

Owners of Pebblebrook Hotel (NYSE: PEB) shares, as of market close today, will be eligible for a dividend of 31 cents per share. At a price of $43.32 as of 9:36 a.m. ET, the dividend yield is 2.8%.

The average volume for Pebblebrook Hotel has been 460,600 shares per day over the past 30 days. Pebblebrook Hotel has a market cap of $3.2 billion and is part of the real estate industry. Shares are down 3.8% year-to-date as of the close of trading on Wednesday.

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Pebblebrook Hotel Trust, through Pebblebrook Hotel, L.P., operates as a real estate investment trust. The company acquires and invests primarily in hotel properties located in the United States. The company has a P/E ratio of 57.79.

TheStreet Ratings rates Pebblebrook Hotel 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 shows low profit margins. You can view the full Pebblebrook Hotel 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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