Published on 20 Jun 2024 on Simply Wall St. · via Yahoo Finance

3i Group (LON:III) Could Be A Buy For Its Upcoming Dividend

Readers hoping to buy 3i Group plc (LON:III) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Meaning, you will need to purchase 3i Group's shares before the 20th of June to receive the dividend, which will be paid on the 26th of July.

The company's next dividend payment will be UK£0.345 per share, and in the last 12 months, the company paid a total of UK£0.61 per share. Looking at the last 12 months of distributions, 3i Group has a trailing yield of approximately 2.0% on its current stock price of UK£30.40. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to investigate whether 3i Group can afford its dividend, and if the dividend could grow.