3 FTSE Shares Going Ex-Dividend Next Week: Aggreko plc, BHP Billiton plc And IMI plc

Ex-dividend day for Aggreko plc (LON: AGK), BHP Billiton plc (LON: BLT) and IMI plc (LON: IMI) approaches.

| 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 sometimes pick up a bargain.

Here are three FTSE companies reaching that key date next Wednesday, 4 September:

Aggreko

It’s interim ex-dividend time for Aggreko (LSE: AGK), and there’s a payment of 9.11p per share up for grabs — a share would cost you 1,558p right now, but that’s more than 30% less than a year ago. First-half pre-tax profit for the supplier of temporary power equipment fell 2% to £146m, with earnings per share (EPS) down 4% to 39.94p. That was a little below expectations.

But the dividend was raised by 10% and was more than adequately covered by earnings, though a similar hike to the final payment would result in a yield of only around 1.7%, with the shares on a forward P/E of 17.

BHP Billiton

It’s a final dividend payment to come from BHP Billiton (LSE: BLT) (NYSE: BBL.US), of 59 cents (38p) per share, to take the miner’s total for the year to 116 cents (75p). That provides a yield of 4% on the current share price of 1,873p, which isn’t at all bad. Revenue and profits were down across the board due to the falls in commodities prices over the company’s year, but the firm did report productivity gains as it raised its dividend by 4%.

And despite the cyclical nature of the business and of profits, BHP Billiton has been lifting its dividend steadily and has been keeping it well enough covered by earnings — this year’s was more than twice covered.

IMI

Engineer IMI (LSE: IMI) is our third for today, after having raised its first-half dividend by 8% to 12.8p per share. That came after half-time results showed a 5% rise in operating profit and a 4% rise in adjusted EPS to 39.6p per share — covering the dividend more than three times.

IMI is another company that has kept its dividend rising nicely year after year, though with the shares having soared by around 70% over the past 12 months to 1,421p, an 8% rise in the final dividend would provide a yield of a modest 2.5%. With single-digit EPS rises forecast for this year and next, the shares are on a forward P/E of 16.5, falling to 15.

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. The Motley Fool has recommended shares in Aggreko.

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

Young black man looking at phone while on the London Overground
Investing Articles

1 giant red flag for Diageo shares!

As an investor in Diageo shares, I'm increasingly worried about one unstoppable generational trend that could reduce sales in future.

Read more »

Bearded man writing on notepad in front of computer
Investing Articles

Billionaire David Tepper has doubled down on these incredibly cheap shares

This top Wall Street fund manager is known for targeting dirt cheap shares in the stock market. What was he…

Read more »

Investing Articles

Down 23%, are Greggs shares a long-term bargain?

Christopher Ruane slices into some possible pros and cons of buying Greggs shares for his portfolio after they slid by…

Read more »

Investing Articles

This boring FTSE 250 stock has an incredible earnings forecast!

This FTSE 250 stock has moved sideways for years. It certainly hasn’t rewarded shareholders. However, things could change in the…

Read more »

Investing Articles

Make or break: could US trade tariffs hurt the UK stock market?

Mark Hartley examines the knock-on effect that Trump tariffs could have on the UK stock market and considers a stock…

Read more »

Passive income text with pin graph chart on business table
Investing Articles

I don’t care if my passive income stock Phoenix Group doesn’t rise this year – I’ve got the 10.1% yield!

A firm’s yield moves in the opposite direction to its share price, so with my core passive income holdings I…

Read more »

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

Vodafone’s share price is down 13% to 69p despite promising Q3 results, so it is an unmissable bargain for me?

Vodafone lost ground after its recent results, but they seemed promising to me, which leaves the share price looking significantly…

Read more »

Buffett at the BRK AGM
Investing Articles

Is Warren Buffett right about this 1 thing when it comes to Lloyds shares?

With the words of Warren Buffett ringing in his ears, our writer considers whether the Lloyds share price will do…

Read more »