3 More FTSE Shares Going Ex-Dividend Next Week: ARM Holdings plc, Shire PLC And TUI Travel PLC

Ex-dividend day is here for ARM Holdings plc (LON: ARM), Shire PLC (LON: SHP) and TUI Travel PLC (LON: TT).

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We’ve already looked at three FTSE 100 companies going ex-dividend next week, and we have a relatively busy week with a few more to come. It’s an important date too, whether you want to hold on to the shares and get your money, or wait in the hope of a disproportionately big price drop and maybe snag a bargain.

Here are three more reaching their big date next Wednesday, 4 September:

ARM Holdings

ARM Holdings (LSE: ARM) (NASDAQ: ARMH) is not exactly known as a great payer of dividends, but they are rising and the chip designer is set to make a first-half payment of 2.1p per share. That’s up 26% on the same period last year, and a similar rise at year-end would provide 5.67p for a yield of 0.6% on the current share price of 878p.

ARM has been boosting its dividend quite strongly — last year the rise was 29%, the previous year 20% — but the strongly-rising share price is keeping the yield consistently low. The shares are up around 50% over the past 12 months, though they have been a lot higher, and a transition from growth to income does not look imminent.


It’s a half-time dividend to come from Shire (LSE: SHP) too, with shareholders to get 1.95p per share — up 12% from the 1.74p paid at the same stage a year ago. Shire is another that doesn’t yield very much, with forecasts for the year to December suggesting just 0.5% on a 2,405p share price.

But at least the payout rises steadily year-on-year, and it’s very well covered. There’s a 70% rise in earnings per share (EPS) currently predicted, and that would cover the dividend more than 12-fold. And Shire is also returning cash to shareholders through a $500m share buyback — as of the interim date, the firm had purchased shares to the value of $289.9m.

TUI Travel

Our third company, TUI Travel (LSE: TT), is also on a first-half dividend, and shareholders have had to wait a long time for it — the six months ended in March with the results out in May, and we’ve even had Q3 results since then. Anyway, it was a strong first half, with the expected seasonal first-half loss improving to £289m from £317m a year previously, and the firm saw fit to up its interim dividend by 10% to 3.75p per share.

We’re looking at better yields here, with 3.6% penciled in for the full year. The recovery in TUI’s share price, which is up 66% to 346p over the past 12 months, has lowered the yield — two years ago brave investors could have had more than 7%.

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.

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> 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.

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