3 UK Shares Going Ex-Dividend
03/15/2013 7:00 am EST
Next Wednesday, March 20, is a big day for income investors, as owners of these three well-known British companies become eligible to be paid, writes Alan Oscroft of The Motley Fool UK.
With so many companies boosting their dividends in line with improving full-year results, investors will surely want to know when they'll be eligible for payment—whether they want to buy in time to get it, or are looking for a bargain price drop on ex-dividend day.
Here are three FTSE-100 companies going ex-dividend next week:
The insurer that famously slashed its final dividend by 44% last week, Aviva (London: AV) will go ex-dividend next Wednesday, March 20.
For those who also received the firm's interim dividend, the full-year cash payout will amount to 19p per share, which is 27% less than the previous year. But even after the fall, it represents a yield of 5.9% on the current share price of 324p, and that's still one of the best in the FTSE-100.
We have, of course, no forecasts for Aviva's 2013 dividend yet, as existing ones were all based on pre-cut levels. But with the shares on a forward price-to-earnings (P/E) ratio of under 8, a lot of people will be seeing them as a bargain now.
On the same day, HSBC (London: HSBA) shares will go ex-dividend. The international bank announced a 10% rise in its full-year dividend to 45 cents per share on March 4, representing a yield of around 4% on the current share price of 734p.
HSBC also told us it plans to lift its first three dividend payments for 2013 by 11%. If that is reflected in the fourth quarter, too (and we will surely be hoping for a bit more than that for the final dividend), we should be looking at a yield of around 4.5% by December 2013.
Wednesday is also ex-dividend day for InterContinental Hotels Group (London: IHG), which on February 19 reported a 10% rise in operating profit for the year to December 2012. Adjusted earnings per share rose by 8.5% to 141.5 cents, enabling the firm to lift its full-year dividend by 16% to 64 cents per share.
With the shares currently trading at 2,019p, that's a yield of only a little over 2%, but it is the third year in a row of dividend growth, with further rises of around 8% and 11% forecast for 2013 and 2014 respectively.