Tomorrow's Ex-Dividends To Watch: FTF, RLI, BAM

Tomorrow, Thursday, May 26, 2016, 57 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 0.1% to 13.9%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Highlighted Stocks Going Ex-Dividend Tomorrow:

Franklin Templeton Ltd Duration Inc Tr

Owners of Franklin Templeton Ltd Duration Inc Tr (AMEX: FTF) shares, as of market close today, will be eligible for a dividend of 6 cents per share. At a price of $11.63 as of 9:30 a.m. ET, the dividend yield is 6.4%.

The average volume for Franklin Templeton Ltd Duration Inc Tr has been 50,300 shares per day over the past 30 days. Franklin Templeton Ltd Duration Inc Tr has a market cap of $311.3 million and is part of the financial services industry. Shares are up 8.5% year-to-date as of the close of trading on Tuesday.

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The company has a P/E ratio of 10.55.

RLI

Owners of RLI (NYSE: RLI) shares, as of market close today, will be eligible for a dividend of 20 cents per share. At a price of $65.64 as of 9:35 a.m. ET, the dividend yield is 1.2%.

The average volume for RLI has been 200,700 shares per day over the past 30 days. RLI has a market cap of $2.8 billion and is part of the insurance industry. Shares are up 7.1% year-to-date as of the close of trading on Tuesday.

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RLI Corp., through its subsidiaries, underwrites property and casualty insurance primarily in the United States. The company has a P/E ratio of 20.78.

TheStreet Ratings rates RLI 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, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. You can view the full RLI Ratings Report now.

Brookfield Asset Management

Owners of Brookfield Asset Management (NYSE: BAM) shares, as of market close today, will be eligible for a dividend of 13 cents per share. At a price of $35.18 as of 9:41 a.m. ET, the dividend yield is 1.5%.

The average volume for Brookfield Asset Management has been 1.1 million shares per day over the past 30 days. Brookfield Asset Management has a market cap of $32.6 billion and is part of the real estate industry. Shares are up 11.3% year-to-date as of the close of trading on Tuesday.

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Brookfield Asset Management Inc. is a publicly owned asset management holding company. Through its subsidiaries the firm invests in the property, power, and infrastructure sectors. The company has a P/E ratio of 19.54.

TheStreet Ratings rates Brookfield Asset Management as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth and reasonable valuation levels. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. You can view the full Brookfield Asset Management 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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