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As the FTSE earnings season winds down, shareholders can now look forward to receiving the dividends that firms have declared. Happy days.
As these payouts were announced, each came with a critical date: the ‘ex-dividend’ date. The term literally means ‘without dividend’. It marks the point (usually a Thursday) when the stock begins trading without the value of the next dividend included in its price.
As such, it’s typical for a stock’s price to fall by approximately the amount of the dividend on the day. So, when a stock goes ex-dividend, the buyer of the stock will not receive the upcoming payment. The dividend goes to the seller of the stock.
This is standard practice and nothing to worry about. Indeed, for stocks with low yields, this decrease might be so minimal that it’s barely noticeable.
FTSE 100 shares going ex-dividend
A total of 11 Footsie shares go…
