3 Stocks Going Ex-Dividend Tomorrow: BGH, WMC, IVR

Tomorrow, Wednesday, December 23, 2015, 20 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 1.5% to 20.4%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Babson Capital Global Short Duration High Y

Owners of Babson Capital Global Short Duration High Y (NYSE: BGH) shares, as of market close today, will be eligible for a dividend of 22 cents per share. At a price of $16.49 as of 9:35 a.m. ET, the dividend yield is 11.9%.

The average volume for Babson Capital Global Short Duration High Y has been 93,600 shares per day over the past 30 days. Babson Capital Global Short Duration High Y has a market cap of $326.7 million and is part of the financial services industry. Shares are down 18.5% year-to-date as of the close of trading on Monday.

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Western Asset Mortgage Capital

Owners of Western Asset Mortgage Capital (NYSE: WMC) shares, as of market close today, will be eligible for a dividend of 58 cents per share. At a price of $11.62 as of 9:37 a.m. ET, the dividend yield is 20.4%.

The average volume for Western Asset Mortgage Capital has been 574,300 shares per day over the past 30 days. Western Asset Mortgage Capital has a market cap of $511.0 million and is part of the real estate industry. Shares are down 20.9% year-to-date as of the close of trading on Monday.

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Western Asset Mortgage Capital Corporation operates as a real estate investment trust in the United States. It primarily focuses on investing in, financing, and managing agency and non-agency residential mortgage-backed securities and commercial mortgage-backed securities. The company has a P/E ratio of 21.77.

TheStreet Ratings rates Western Asset Mortgage Capital as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. 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 Western Asset Mortgage Capital Ratings Report now.

Invesco Mortgage Capital

Owners of Invesco Mortgage Capital (NYSE: IVR) shares, as of market close today, will be eligible for a dividend of 40 cents per share. At a price of $13.11 as of 9:36 a.m. ET, the dividend yield is 12.3%.

The average volume for Invesco Mortgage Capital has been 1.5 million shares per day over the past 30 days. Invesco Mortgage Capital has a market cap of $1.6 billion and is part of the real estate industry. Shares are down 15.1% year-to-date as of the close of trading on Monday.

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Invesco Mortgage Capital Inc., a real estate investment trust, focuses on investing in, financing, and managing residential and commercial mortgage-backed securities and mortgage loans. It invests in residential mortgage-backed securities for which a U.S.

TheStreet Ratings rates Invesco Mortgage Capital as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. You can view the full Invesco Mortgage Capital 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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