Potential Future plays

In the following weeks, several other UK 100 shares will be going ex-dividend. Here’s a sample selection of several potential dividend plays and how these particular shares performed during the previous dividend period.

• Tesco will be going ex-dividend on 17 May 2018, with a 2p/share dividend pay-out
• Previous time Tesco went ex-dividend was on 12 October 2017 (1p/share)
• It took Tesco shares 7 days to fully recoup the losses and come back into money
• Historically, Tesco paid out 13 dividends between May 2008 and May 2018
• Average historical recovery time until break-even point was equal to 2.38 days

Tesco (TSCO), 12 Oct 2017 ex-Div Reaction

(Source: CMC Markets, Date: 10.05.2018)

Morrisons (MRW), 28 Sept 2017 ex-Div Reaction

(Source: CMC Markets, Date: 10.05.2018)

• Morrisons will be going ex-dividend on 24 May 2018
• Company will issue a combination of Final (4.43p/share) and Special (4p/share) dividends
• Previous time Morrisons went ex-dividend was on 28 September 2017 (1.66p/share)
• Morrisons shares recouped the losses (inclusive of dividend) the same day
• Historically, Morrisons paid out 15 dividends between May 2008 and May 2018

Average historical recovery time until break-even point was equal to 2.07 days

• Another example of a potential future dividend play is Whitbread
• Whitbread will be going ex-dividend on 24 May 2018 (69.75p/share)
• Previous time Whitbread went ex-dividend was on 9 November 2017 (@ 31.4p/share)
• Whitbread shares recouped the losses (inclusive of dividend) the same day
• Historically, Whitbread paid out 18 dividends between May 2008 and May 2018

Carnival (CCL), 22 Feb 2018 ex-Div Reaction

(Source: CMC Markets, Date: 10.05.2018)

Whitbread (WTB), 9 Nov 2017 ex-Div Reaction

(Source: CMC Markets, Date: 10.05.2018)

• Average historical recovery time until break-even point was equal to 2.5 days
• Dividend plays are not always a successful short-term strategy
• The previous time Carnival (CCL) has gone ex-dividend was on 22 February 2018 (at 32.734p/share)
• Shares did not manage to fully recoup ex-dividend day losses and the dividend play never came back “into money”
• Overall, Carnival paid out 15 dividends between May 2008 and May 2018, with an average historical break-even point at 2.84 days
• Like Morrisons and Whitbread, Carnival will be going ex-dividend next time on 24 May 2018

To take full advantage of potential dividend play opportunities, it is essential to equip yourself with a cutting edge analytical support structure. Every week here at Accendo Markets, we prepare a Week in Advance research publication that keeps our clients informed about the most important events of the upcoming days, major corporate results, macroeconomic news and next week’s UK Index ex-dividends data.

 Our UK Index ex-dividends research publication is then updated throughout the week to make sure our clients have the most up to date information regarding the yield and schedule for that dividend payment, enabling them to make informed investment decisions.

 You can click here to sign-up to Accendo Markets Research & Trade Ideas to get access to Week in Advance and our other research publications.