3 FTSE 100 Shares Going Ex-Dividend Next Week: British American Tobacco plc, Carnival plc And Capita PLC

It’s ex-dividend time for British American Tobacco plc (LON: BATS), Carnival plc (LON: CCL) and Capita PLC (LON: CPI).

| 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.

Ex-dividend date is an important one if you want to be eligible for a dividend payment — as long as you hold the shares up to and including that day, you’ll get your money. Alternatively, sometimes share prices fall further than expected when the day comes around, and if you’re careful you can perhaps pick up a bargain.

Here are three FTSE 100 companies reaching the critical date on Wednesday, 21 August:

British American Tobacco

British American Tobacco (LSE: BATS) (NYSE: BTI.US) is to pay a first-half dividend of 45p per share, with next Wednesday being the key date for qualifying. The payment represents a 7% rise over the first half of the previous year, and came after the company enjoyed a 10% rise in earnings per share (EPS), at constant exchange rates, to 111p. Adjusted operating profit was up 6%, to £2.94bn.

The currently-forecast full-year dividend of around 145p would require a similar 7% rise in the final dividend, and that looks like a reasonable expectation on these results. If paid, it would provide shareholders with a 4.2% yield based on today’s 3,456p share price.

Carnival

Cruise operator Carnival (LSE: CCL) (NYSE: CCL.US) released first-half results on 25 June, and showed a fall in revenue to $7.07bn, from $7.12bn in the first half of the previous year. But it did turn in positive EPS of 10 cents, and kept its quarterly dividend of 25 cents per share unchanged with the total for the first half steady at 50 cents. The firm also told us it expected full-year EPS to be down from $1.88 to somewhere between $1.45 and $1.65.

At the moment, it’s looking as if the full-year dividend will remain unchanged at $1 per share, or approximately 65p. With the shares currently trading at 2,476p, that would provide a modest yield of 2.6%.

Capita

Our third for next Wednesday is outsourcing firm Capita (LSE: CPI), which will go ex-dividend with respect to a first-half dividend of 8.7p per share. That was a welcome boost of 10% from the 7.9p paid for the same period the previous year, and a repeat of that rise in the final dividend would yield around 2.6%.

That’s not a massive payment, but the shares are up around 40% over the past 12 months, so the dividend adds a nice sweetener to that. We are looking at a slightly lofty P/E based on current forecasts of 18, but Capita has grown its earnings for five straight years and has two more years of growth forecast.

Finally, do you like having your investment returns boosted by dividends like these? Dividends can be spent or reinvested according to your needs — whether you’re investing for income or growth, good old cash is always welcome.

And that’s why I recommend the BRAND-NEW Fool report, “The Motley Fool’s Top Income Share For 2013“, in which our top analysts identify a share that they believe will provide handsome dividend income for years to come.

But it will only be available for a limited period, so click here to get your copy today.

> Alan does not own any shares mentioned in this article.

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.

More on Investing Articles

Investing For Beginners

How to try and build a £250k Stocks and Shares ISA from scratch, starting in 2024

With a regular savings plan and a smart investment strategy, it’s possible to build wealth within a Stocks and Shares…

Read more »

Investing Articles

I’m considering 3 top UK dividend stocks for my portfolio this July

Mark David Hartley is looking at adding a few dividend stocks to his portfolio this month. Will these three shares…

Read more »

Investing Articles

3 FTSE 100 shares I’d buy to create lasting passive income

Dividend stocks are a great way to build an additional income. Our writer details three FTSE 100 picks she’d love…

Read more »

Investing Articles

After falling 9% in 6 weeks, is this FTSE 100 stock now in bargain territory?

The BAE Systems share price hit a 52-week high on 3 June. Six weeks later, it’s down nearly 10%. Is…

Read more »

Smiling white woman holding iPhone with Airpods in ear
Investing Articles

I love the look of Entain shares, potentially 47% undervalued

Many FTSE 100 companies have been on a tear in 2024, but with Entain shares down nearly 50%, I think…

Read more »

Investor looking at stock graph on a tablet with their finger hovering over the Buy button
Investing Articles

Could Aviva shares reach £5.84 in the next 12 months?

Some analysts think Aviva shares could soar nearly 19% in the next year. This Fool takes a closer look to…

Read more »

Investing Articles

I’m looking at a once-in-a-decade chance to buy dirt-cheap FTSE dividend shares

Harvey Jones says FTSE 100 dividend shares have been showing signs of life lately but they're still cheap and there's…

Read more »

Arrow symbol glowing amid black arrow symbols on black background.
Investing Articles

If I’d put £10k in BAE Systems shares 10 years ago, here’s what I’d have now

BAE Systems shares have been on fire over the last decade. But just how much would a £10k investment back…

Read more »