This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
One of the biggest dividend days for the UK Index this year looms large next Thursday.
Big names like BT, Anglo American, BP, Royal Dutch Shell, GlaxoSmithKline, AstraZeneca, Diageo, Lloyds and many more are paying anywhere up to 3.3%*. Here’s how not to miss out.
With some spectacular moves among UK Index blue-chips lately, often overlooked is the fact that nearly all of them also pay out rather lucrative dividends. And who doesn’t like getting money for nothing?
To put this into perspective, next Thursday’s dividend payout equates to a whopping 41.1pt adjustment to the UK 100 index (0.5%). To receive a full list of those going ex-dividend on a weekly basis click here to get access to our research and ensure that you never miss a trick. The list of generous corporates giving out cash next week include:
BT 3.3% (10.6p), Anglo American 2.8% (36.5p), BP 7.6p (1.65%), Royal Dutch Shell 35.7p (1.65%), GlaxoSmithKline 19p (1.24%), AstraZeneca (69p (1.5%), Diageo 38.5p (1.6%), Lloyds 1p (1.5%).
A host of others also go ex-div on Thursday, offering smaller % yields. But that doesn’t necessarily make them any less interesting. Remember that many companies pay several dividends per year, so the true yield may in fact be much higher. Up to four times if they pay quarterly, such as BP, Shell, GSK and AZN.
“So how do I still get my hands on these?” I hear you say. Well, I have good news. Even if you aren’t already holding the shares today, you still have plenty of time to take out a position using one of our popular CFD accounts. As long as you hold the shares by the close of play Wednesday, you are entitled to the full payment, in cash, first thing on Thursday .
Sound too good to be true? Actually it’s even better than that. You don’t even need to shell out for the full value of the shares. You only need put down a deposit (typically 5-10%), and you still get paid out on the full exposure. And there’s even more. You also avoid paying stamp duty. Every little helps, right?
In theory the shares should adjust lower by the equivalent amount to the dividend being paid. After all, the company is paying out cash so its shares should be worth less. They may even fall by more, in reaction to company/sector news or world events. However, any subsequent share price recovery to break-even would see you in profit for the full value of the dividend, even if the shares have, in effect, gone nowhere. Easy money? If your luck is really in, the shares could even go up on dividend day.
Don’t forget to sign up to our Daily Research here to get the full list of companies going ex-dividend and much, much more….
Next week is going to be an exciting one!
Kind Regards,
George Walker, Trader, 4 Aug 2017
*prices and percentage yields correct at time of writing
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research
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