3 Stocks Going Ex-Dividend Tomorrow: FGB, PAAS, STE

Tomorrow, Friday, August 21, 2015, 18 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.4% to 11.4%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

First Trust Special Finance and Financial O

Owners of First Trust Special Finance and Financial O (NYSE: FGB) shares, as of market close today, will be eligible for a dividend of 18 cents per share. At a price of $6.17 as of 9:30 a.m. ET, the dividend yield is 11.4%.

The average volume for First Trust Special Finance and Financial O has been 48,900 shares per day over the past 30 days. First Trust Special Finance and Financial O has a market cap of $88.2 million and is part of the financial services industry. Shares are down 21.9% year-to-date as of the close of trading on Wednesday.

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Pan American Silver

Owners of Pan American Silver (NASDAQ: PAAS) shares, as of market close today, will be eligible for a dividend of 5 cents per share. At a price of $7.40 as of 9:37 a.m. ET, the dividend yield is 2.9%.

The average volume for Pan American Silver has been 2.9 million shares per day over the past 30 days. Pan American Silver has a market cap of $1.1 billion and is part of the metals & mining industry. Shares are down 22.4% year-to-date as of the close of trading on Wednesday.

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Pan American Silver Corp., together with its subsidiaries, operates and develops, and explores for silver producing properties and assets in Mexico, Peru, Argentina, and Bolivia. The company also produces and sells gold, zinc, lead, and copper.

TheStreet Ratings rates Pan American Silver as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself. You can view the full Pan American Silver Ratings Report now.

Steris

Owners of Steris (NYSE: STE) shares, as of market close today, will be eligible for a dividend of 25 cents per share. At a price of $67.35 as of 9:34 a.m. ET, the dividend yield is 1.4%.

The average volume for Steris has been 661,900 shares per day over the past 30 days. Steris has a market cap of $4.1 billion and is part of the health services industry. Shares are up 4.8% year-to-date as of the close of trading on Wednesday.

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STERIS Corporation develops, manufactures, and markets infection prevention, contamination control, microbial reduction, and procedural support products and services for healthcare, pharmaceutical, scientific, research, industrial, and governmental customers worldwide. The company has a P/E ratio of 31.17.

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