3 FTSE 100 Shares Going Ex-Dividend Next Week: BAE Systems plc, HSBC Holdings plc And Rolls-Royce Holdings PLC

It’s income time for BAE Systems plc (LON: BA), HSBC Holdings plc (LON: HSBA) and Rolls-Royce Holdings PLC (LON: RR).

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

With news of the US budget-wrangling turning sour, the FTSE 100 (FTSEINDICES: ^FTSE) has dipped, losing 27 points to 6,522 by mid-morning. But at least it’s not a big fall, so maybe the markets are getting tired of jumping up and down every time nothing much happens in Washington — the brinkmanship will come to an end and it really is nothing to panic about.

One way to avoid daily up-and-down worries is to focus on dividends, and if you do that you need to be sure to hold on to your shares until they pass their ex-dividend date. Here are three FTSE 100 companies reaching that cut-off day next Wednesday, 23 October:

BAE Systems

It’s interim ex-dividend day for BAE Systems (LSE: BA), with shareholders to get an 8p-per-share payment for the first half of 2013. That’s a 2.6% rise over the 7.8p paid out for the first half a year previously, and is well covered by underlying earnings per share (EPS) of 17.8p — although that EPS figure was 4% down.

The City is expecting earnings to pick up in the second half, and analysts are predicting a full-year dividend of around 20p. The share price stands at 436p this morning, so that would suggest a yield of 4.6% if you bought at that price. With BAE a member of the Fool’s Beginners’ Portfolio, I’ll be happy with that.

HSBC Holdings

It’s third-quarter dividend time for shareholders of HSBC Holdings (LSE: HSBA) (NYSE: HBC.US), who will get 10 cents (6.2p) per share. The bank’s policy is to pay three equal dividends for the first three quarters, with the final dividend being variable. If the current analysts’ consensus of 33p per share turns out to be accurate, that’ll mean a final payment of about 14-15p per share to provide a yield of 4.8% on today’s price of 682p.

HSBC’s dividend was slashed by nearly half in the crunch year of 2009, but at least it kept some payments coming, and it has recovered steadily since — this year’s shouldn’t be too far below pre-crunch levels.

Rolls-Royce Holdings

Rolls-Royce Holdings (LSE: RR) is our third for today, with a first-half dividend of 8.6p per share on the way. It was a good first half, too, with revenue up 27% over the first half of 2012 and the firm’s order book up 15%. Underlying EPS gained 27% to 33.3p, and that 8.6p interim payout represents a 13% boost on a year previously.

The same increase in the final payment would provide a total of 22p per share, though with the share price up 25% over the past 12 months to 1.105p, the yield would be a pretty modest 2%.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

> Alan does not own shares in any of the companies mentioned.

More on Investing Articles

Black woman using loudspeaker to be heard
Investing Articles

I was right about the Barclays share price! Here’s what I think happens next

Jon Smith explains why he still feels the Barclays share price is undervalued and flags up why updates on its…

Read more »

Investing Articles

Where I’d start investing £8,000 in April 2024

Writer Ben McPoland highlights two areas of the stock market that he would target if he were to start investing…

Read more »

View of Tower Bridge in Autumn
Investing Articles

Ahead of the ISA deadline, here are 3 FTSE 100 stocks I’d consider

Jon Smith notes down some FTSE 100 stocks in sectors ranging from property to retail that he thinks could offer…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

Why I think Rolls-Royce shares will pay a dividend in 2024

Stephen Wright thinks Rolls-Royce shares are about to pay a dividend again. But he isn’t convinced this is something investors…

Read more »

Investing Articles

1 of the best UK shares to consider buying in April

Higher gold prices and a falling share price have put this FTSE 250 stock on Stephen Wright's list of UK…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

The market is wrong about this FTSE 250 stock. I’m buying it in April

Stephen Wright thinks investors should look past a 49% decline in earnings per share and consider investing in a FTSE…

Read more »

Black father and two young daughters dancing at home
Investing Articles

1 FTSE 250 stock I own, and 1 I’d love to buy

Our writer explains why she’s eyeing up this FTSE 250 growth phenomenon, and may buy more shares in this property…

Read more »

View of Tower Bridge in Autumn
Investing Articles

The FTSE 100 is closing in on 8,000 points! Here’s what I’m buying before it’s too late!

As the FTSE 100 keeps gaining momentum, this Fool is on the lookout for bargains. Here's one stock he'd willingly…

Read more »