3 FTSE Shares Going Ex-Dividend Next Week: Legal & General Group Plc, Tullow Oil plc and Stagecoach Group plc

It’s ex-dividend time for Legal & General Group Plc (LON: LGEN), Tullow Oil plc (LON: TLW) and Stagecoach Group plc (LON: SGC).

| 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 companies reaching the critical date next Wednesday, 28 August:

Legal & General Group

We’ll have an interim dividend of 2.4p per share from Legal & General Group (LSE: LGEN), and it comes after a pleasing set of first-half figures released on 6 August. The firm enjoyed a 14% rise in operational cash generation, with pre-tax profit up 13% to £529m and earnings per share (EPS) up 13% to 7.82p.

The interim dividend of 2.4p represents a rise of 22% over the corresponding period a year previously. If we see a similar rise in the final payment we’ll be looking at a full-year 9.3p, providing a 4.7% yield on the current share price of 197p. And that price, incidentally, is up around 50% over the past 12 months. Growth or income? Have both!

Tullow Oil

Tullow Oil (LSE: TLW) has not rewarded its shareholders with a price rise this year — in fact, it’s down 25% to 1,034p over the past 12 months. But there is at least a 4p-per-share interim dividend to come, which was held flat for the six-month period to 30 June despite pre-tax profit dropping 41% and EPS falling 47% to 32.2 cents.

The profit situation was actually better than it looked, mind, as the first half of 2012 had been buoyed by $702m in profit from disposals — gross profit this year was actually up 13% to $764m after revenues grew 15%.

Stagecoach Group

Our final ex-dividend event next week is from Stagecoach (LSE: SGC), and this time it’s a final payment of 6p per share after the transport operator brought home a forecast-busting 18.9% rise in EPS to 30.2p. The final 6p takes the firm’s full-year total to 8.3p per share, up 10.3% on the previous year.

The Stagecoach share price has slipped back a bit over the past month, but at 315p it’s up around 6% over the past year. At the current price, that 8.3p dividend represents a 2.6% yield — that’s not massive, but it’s growing and there’s a further 8% rise forecast for 2014.

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

Bearded man writing on notepad in front of computer
Investing Articles

I’m getting nervous about the Lloyds share price

The Lloyds share price has soared by more than 50% over the past 12 month, easily beating the wider FTSE…

Read more »

A pastel colored growing graph with rising rocket.
Investing Articles

Meta stock is up 17 days in a row! Time to buy this record-setter?

Our writer wonders whether now is the time for him to add Meta stock to his ISA portfolio after its…

Read more »

Man putting his card into an ATM machine while his son sits in a stroller beside him.
Investing Articles

4 good reasons why I’m avoiding cheap Lloyds shares like the plague!

Lloyds shares look dirt cheap based on earnings, dividends, AND asset values. But is the FTSE 100 bank a risk…

Read more »

Young brown woman delighted with what she sees on her screen
Investing Articles

31% revenue growth! This top growth stock just keeps powering on

Shopify (NYSE:SHOP) smashed it in the fourth quarter, wrapping up an outstanding 2024. But is this growth stock worth considering…

Read more »

Investing Articles

Down 23% in a year, is Frasers Group a FTSE 250 bargain?

Christopher Ruane explains why he is taking the Buffett approach by sticking to what he comfortably understands. That does not…

Read more »

The words "what's your plan for retirement" written on chalkboard on pavement somewhere in London
Investing Articles

How much would someone need to invest in the stock market to retire and live off passive income?

Christopher Ruane explains some approaches and potential pitfalls of putting money in the stock market to try and retire early…

Read more »

British flag, Big Ben, Houses of Parliament and British flag composition
Growth Shares

This little-known technology company is now the 6th-largest business in the FTSE 100

Over the last few years, this under-the-radar technology business has quietly become one of the largest companies in the FTSE…

Read more »

Investing Articles

Barratt Redrow shares spike 6% as profits forecasts hiked! Time to consider buying in?

Barratt shares are leading the FTSE 100 higher in midweek business. Is now the time to consider the housebuilder as…

Read more »