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The dividends have stored coming thick and quick from FTSE 100 shares. Funds introduced over the summer season have steadily streamed in, or not less than gone previous their ex-dividend dates.
When a share goes ex-dividend, it means the corporate has declared a dividend, however the deadline to be eligible for that payout’s handed. Buyers who purchase the inventory on or after the ex-dividend date aren’t entitled to assert the upcoming dividend.
A number of the UK’s largest blue-chip shares have gone ex-dividend right now. These are Centrica, Hargreaves Lansdown, Smith & Nephew, Weir Group, and Phoenix Group Holdings.
One other three shares from the Footsie will be a part of the ex-dividend membership subsequent week too, on 10 October.
The three shares about to go ex-dividend
These are:
| FTSE 100 inventory | Dividend per share | Dividend sort | Cost date | Dividend yield |
|---|---|---|---|---|
| Taylor Wimpey (LSE:TW.) | 4.8p | Interim | 15 November | 5.6% |
| WPP | 15p | Interim | 1 November | 4.9% |
| Kingfisher | 3.8p | Interim | 15 November | 3.6% |
Buyers who purchase in earlier than these ex-dividend dates can seize a dividend round four-to-six weeks from now.
Buying earlier than these closing dates is a well-liked thought with share traders who make investments for earnings, and for people who observe the ‘dividend seize technique’. This investing idea includes shopping for a share earlier than the ex-dividend date to assert the dividend after which promoting up shortly afterwards.
However there’s an essential factor to recollect right here. On the ex-dividend date, an organization’s share value often falls by roughly the quantity of the dividend as a result of new traders aren’t eligible to obtain it.
So a inventory that’s resulting from pay a 10p per share money reward and closes at 100p per share, as an example, may open at 90p on the ex-dividend date. Keep in mind although, that different elements (resembling broader market circumstances and company-specific information) may see it open above or under 90p.
A Silly takeaway
It’s my opinion that Taylor Wimpey is perhaps an amazing dividend share to think about right now. This might not be a shock to common readers who know I personal it in my Shares and Shares ISA.
Not solely does the housebuilder supply that giant 5.6% dividend yield for 2024, however expectations of a bigger 9.64p per share money reward for 2025 drives the yield to a considerable 5.8%. That’s up from a predicted 9.38p this yr.
It’s essential to notice that dividends cowl’s fairly poor for the interval nonetheless. The truth is, this yr’s predicted dividend is larger than anticipated earnings of 8.07p per share. And 2025’s anticipated reward is barely coated by forecast earnings of 10.38p.
However indicators of restoration within the UK properties market — mixed with Taylor Wimpey’s robust stability sheet — give present dividend forecasts severe credibility. The FTSE agency additionally had web money of £584m as of June.
Given the brilliant long-term outlook for the housing market, this might be an amazing passive earnings share for years.
