Australia Markets open in 5 hrs 38 mins

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

James Mickleboro
dividends

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.

NEW! Top 3 Dividend Bets for 2019

With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.

Hint: These are 3 shares you’ve probably never come across before.

They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”

We think these 3 shares offer solid growth prospects over the next 12 months. Each of these three companies boasts fully franked yields and could be a great fit for your diversified portfolio. You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."

Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!

The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free copy right now!

More reading

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