Picture supply: Getty Photos
The dividends have saved coming thick and quick from FTSE 100 shares. Funds introduced over the summer time have steadily streamed in, or at the least gone previous their ex-dividend dates.
When a share goes ex-dividend, it means the corporate has declared a dividend, however the closing date to be eligible for that payout’s handed. Traders who purchase the inventory on or after the ex-dividend date aren’t entitled to say the upcoming dividend.
A number of the UK’s largest blue-chip shares have gone ex-dividend right this moment. These are Centrica, Hargreaves Lansdown, Smith & Nephew, Weir Group, and Phoenix Group Holdings.
One other three shares from the Footsie will be 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% |
Traders who purchase in earlier than these ex-dividend dates can seize a dividend round four-to-six weeks from now.
Buying earlier than these deadlines is a well-liked concept with share buyers who make investments for earnings, and for those who comply with the ‘dividend capture strategy’. This investing idea entails shopping for a share earlier than the ex-dividend date to say 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 buyers aren’t eligible to obtain it.
So a inventory that’s as a consequence of pay a 10p per share money reward and closes at 100p per share, for example, would possibly open at 90p on the ex-dividend date. Keep in mind although, that different elements (equivalent to broader market circumstances and company-specific information) would possibly see it open above or beneath 90p.
A Silly takeaway
It’s my opinion that Taylor Wimpey may be an important dividend share to contemplate right this moment. This is probably not a shock to common readers who know I personal it in my Shares and Shares ISA.
Not solely does the housebuilder provide 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 12 months.
It’s essential to notice that dividends cowl’s fairly poor for the interval nevertheless. The truth is, this 12 months’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 sturdy 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 may very well be an important passive earnings share for years.
