Dividend Watch: 3 Stocks Going Ex-Dividend Monday: KYN, CMC, GPS

Monday, Monday, April 04, 2016, 13 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.7% to 13.8%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Monday:

Kayne Anderson MLP Investment Company

Owners of Kayne Anderson MLP Investment Company (NYSE: KYN) shares, as of market close today, will be eligible for a dividend of 55 cents per share. At a price of $16.12 as of 9:36 a.m. ET, the dividend yield is 13.8%.

The average volume for Kayne Anderson MLP Investment Company has been 866,800 shares per day over the past 30 days. Kayne Anderson MLP Investment Company has a market cap of $1.8 billion and is part of the financial services industry. Shares are down 4.2% year-to-date as of the close of trading on Thursday.

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Commercial Metals

Owners of Commercial Metals (NYSE: CMC) shares, as of market close today, will be eligible for a dividend of 12 cents per share. At a price of $16.75 as of 9:37 a.m. ET, the dividend yield is 2.8%.

The average volume for Commercial Metals has been 2.0 million shares per day over the past 30 days. Commercial Metals has a market cap of $2.0 billion and is part of the metals & mining industry. Shares are up 24% year-to-date as of the close of trading on Thursday.

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Commercial Metals Company manufactures, recycles, and markets steel and metal products, and related materials and services in the United States and internationally. The company has a P/E ratio of 15.62.

TheStreet Ratings rates Commercial Metals as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity. You can view the full Commercial Metals Ratings Report now.

Gap

Owners of Gap (NYSE: GPS) shares, as of market close today, will be eligible for a dividend of 23 cents per share. At a price of $29.37 as of 9:37 a.m. ET, the dividend yield is 3.1%.

The average volume for Gap has been 6.6 million shares per day over the past 30 days. Gap has a market cap of $11.8 billion and is part of the retail industry. Shares are up 19% year-to-date as of the close of trading on Thursday.

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The Gap, Inc. operates as an apparel retail company worldwide. It offers apparel, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Athleta, and Intermix brands. The company has a P/E ratio of 123.58.

TheStreet Ratings rates Gap as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and disappointing return on equity. You can view the full Gap 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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