IAG trades ex-dividend; yields 6.5% fully franked

Insurance Australia Group trades without its 25 cents final dividend

Bruce Jackson

Bruce co-founded The Motley Fool UK in 1997. Now back in his native Australia, Bruce is the General Manager of the Motley Fool's Australian operations. Bruce holds a Bachelor of Business (Accounting) and a Diploma of Financial Services. He writes The Motley Fool's popular and widely read Take Stock free email newsletter. He is a keen investor himself, and particularly enjoys picking up stocks during the market's periodic but regular periods of panic.

Published September 5, 2013 2:24 pm AEST

Leading insurance company Insurance Australia Group (ASX: IAG) trades ex-dividend today. On August 22nd, the company reported a 69% increase in insurance profit, and raised its full year dividend by 112% to 36 cents.

The fully franked final dividend of 25 cents will be paid on 9 October 2013 to IAG shareholders on the register at the close of business on 11 September 2013.

IAG shares have fallen 35 cents today to $5.50 (25 cents of that fall being the ex-dividend), and trade on an attractive trailing dividend yield of 6.5%. By comparison, QBE Insurance (ASX: QBE) trades on a forecast dividend yield of around 3%.

IAG's dividend yield is attractive, for sure. But what if I could find you another great dividend paying stock (fully franked), one vetted and recommended by one of The Motley Fool's top investment advisors?

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