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

Investing Articles

Is this one of the FTSE 100’s best-value growth shares?

Looking for great-value recovery shares to buy today? Based on City forecasts, this could be one of the best that…

Read more »

Investing Articles

Will the Tesco share price hit a 10-year high in 2024?

Up from 200p less than two years ago, the Tesco share price has enjoyed impressive growth lately. Now I'm considering…

Read more »

Electric cars charging in station
Investing Articles

Where will Tesla stock be in 5 years? Here’s what the experts say

The analysts' outlook for Tesla stock in the next few years seems to be all over the place, as the…

Read more »

Man writing 'now' having crossed out 'later', 'tomorrow' and 'next week'
Investing Articles

Nearing its 12-year low, this FTSE growth stock could be the bargain of the year!

Harvey Jones has happy memories of owning this FTSE 100 growth stock. Now he's wondering whether to take a trip…

Read more »

Investing Articles

BT share price: a bargain or one to avoid?

This Fool has been keeping tabs on the BT share price. Despite looking cheap, he's steering clear of the stock…

Read more »

British flag, Big Ben, Houses of Parliament and British flag composition
Investing Articles

3 reasons why I predict UK shares will soar over the next 12 months!

Our writer believes there are plenty of reasons why UK shares will do well over the next year or so.…

Read more »

Investing Articles

Are these the best stocks to buy after the UK election?

With Labour now leading the UK, change is on the horizon. I'm considering the best stocks to buy based on…

Read more »

Investing Articles

1,000 shares in this FTSE 100 stalwart would give me £525 of dividends!

The FTSE 100 is packed full of stocks offering sizeable dividend yields, but I feel this one is the pick…

Read more »