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Should you buy CBA and these ASX shares before they go ex-dividend?

James Mickleboro

A number of popular dividend shares will trade ex-dividend on Wednesday, which means investors will need to act fast if they want to qualify for their latest payouts.

Three dividend shares that are going ex-dividend this week are listed below. Should you invest today?

Commonwealth Bank of Australia (ASX: CBA)

On Wednesday the shares of Australia’s largest bank will trade ex-dividend for its $2.31 per share fully franked dividend. This dividend will then be paid to eligible shareholders on September 26. Whilst I think that CBA is worth considering if you don’t already have exposure to the banking sector, I feel the rest of the big four offer more value for money. My pick is Australia and New Zealand Banking Group (ASX: ANZ) due to its attractive valuation and above-average dividend yield.

Scentre Group (ASX: SCG)

Scentre is the owner of all the Westfield properties in the Australia and New Zealand region and is going ex-distribution on Wednesday for its 11.3 cents per unit distribution. This will then be paid to eligible unitholders on August 30. I think Scentre would be a good option for income investors due to the quality of its assets, solid long-term growth prospects, and above-average distribution yield. In light of this, I think it is worth buying its units this week and taking advantage of this latest payout.

Suncorp Group Ltd (ASX: SUN)

This insurance giant’s shares will also trade ex-dividend on Wednesday. Suncorp is paying shareholders a 44 cents per share fully franked final dividend, which will then be paid to eligible shareholders on September 25. Whilst I think that things are looking better for the company now, especially after it scrapped its Marketplace strategy, I haven’t seen enough to want to invest just yet. As a result, I wouldn’t be in a rush to invest today in order to qualify for this latest dividend.

Instead of Suncorp, I would be buying one of these buy-rated dividend shares which I expect to provide stronger total returns for investors over the next few years.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Scentre Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019