The FTSE 100 (FTSEINDICES: ^FTSE) looks set to extend its losing streak to four weeks in a row, with this morning’s modest rise of 14 points to 6,650 not enough to counter yesterday’s 58-point fall. The index of top UK shares is down 26 points on the week so far, and while that isn’t a lot to recover, sentiment seems pessimistic.
But if you focus on dividends, you can simply ignore these week-by-week ups and downs — but do be sure to hold on to your shares until they pass their ex-dividend date if you want to be eligible for the cash. Here are three FTSE 100 companies reaching their cut-off day next Wednesday, 4 December:
Associated British Foods
Associated British Foods (LSE: ABF) shareholders have had a great year so far, with their shares up nearly 55% over 12 months to 2,267p.
But that’s not all, as they also have a final dividend of 22.65p per share to come after full-year earnings per share rose 13% to 98.9p. That takes the total annual payment up to 32p, which provides a yield of only 1.4% on today’s price. But it’s a nice extra, and there’s a 7% rise in next year’s dividend currently forecast.
The share price rise has pushed the P/E rating up to 22, which is significantly above the FTSE’s long-term average of 14, so there’s more growth already factored into the price.
London Stock Exchange
There’s an interim dividend to come from the London Stock Exchange Group (LSE: LSE) itself, of 10.1p per share, after the company reported an 8% rise in first-half revenues on 13 November.
That’s a 4% rise on the previous year’s interim payment, and if extended to the full year would result in a 1.9% yield based on today’s 1,621p share price — but the City currently has a little more than that penciled in.
And it comes on top of a share price rise of more than 60% over the past 12 months, as longer-term optimism is returning to stock markets.
National Grid
The best yield of today’s three comes from National Grid (LSE: NG) (NYSE:NGG.US), which will hand out an interim payment of 14.49p per share despite first-half pre-tax profit having fallen back by 7% — but that was considered to be temporary, and did not impact dividend.
National Grid still looks on for a full-year dividend yield of around 5.5%, based on current forecasts and on today’s share price of 775p, with full-year earnings per share expected to drop this year but recover in 2014.
