8 Ex-Dividend Stocks With Buy Ratings
NEW YORK ( TheStreet) -- The following stocks go ex-dividend Monday, meaning an investor must purchase the shares Friday to qualify for the next dividend payment: Toronto Dominion Bank (TD) , Raytheon(RTN) , Rent-A-Center(RCII) , Kimco Realty (KIM) , CVB Financial (CVBF) , Covidien(COV) , Comcast(CMCSA) and Mack-Cali Realty (CLI) .
Each of the stocks received a buy rating from TheStreet Ratings .
Toronto Dominion Bank
The bank reported on March 1 first-quarter earnings of 1.4 billion Canadian dollars, or C$1.87 a share, down from year-earlier earnings of 1.5 billion Canadian dollars, or C$1.75 a share.
"TD remains Outperform rated," BMO Capital Markets analysts wrote in a March 1 report. "Strong loan growth in both Canadian and U.S. retail banking highlights the strength of TD's business model. Given its momentum, U.S. earnings growth should accelerate next year after the impact of the Durbin amendment abates. The relative valuation on TD's shares should improve given the continued strength of its retail franchises. Member of Top 15 Large Cap, Income and Quantitative stock selections."
Forward Annual Dividend Yield: 3.4%
Rated "B- (Buy)" by TheStreet Ratings : The company's first-quarter gross profit margin was about the same as it was the previous year.
In the first quarter, stockholders' net worth increased 6.1% from the prior year.
TheStreet Ratings' price target is $97.01. The stock closed Thursday at $84.63 and has risen 13.13% year to date.
"Raytheon raised its quarterly dividend on common stock 16.3% to 50¢ from 43¢ last night," Bank of America Merrill Lynch analysts wrote in a March 22 report. "The dividend is payable on 3 May 2012 to shareholders of record as of 4 April 2012. The dividend increase was above BofAMLe forecast of 45¢. We are increasing our 2012 dividend forecast to $2.00 from $1.78 and raising outyear dividend estimates. On balance, we were not surprised by the company's dividend increase as the company has plentiful cash. We note that RTN ended 4Q11 with $4bn of cash on the balance sheet. This represents ~23% of the company's market cap of $17.595bn as of 21 March 2012. We would not be surprised to see more aggressive share buybacks through the year or other means of cash deployment."
Forward Annual Dividend Yield: 3.8%
Rated "A- (Buy)" by TheStreet Ratings : The company's fourth-quarter gross profit margin increased from the previous year.
Raytheon has weak liquidity. Its Quick Ratio is 0.87, which demonstrates a lack of ability to meet its short-term cash needs.
In the fourth quarter, stockholders' net worth decreased 16.12% from the prior year.
TheStreet Ratings' price target is $60.01. The stock closed Thursday at $52.86 and has risen 9.26% year to date.