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

Over the coming days a number of popular shares are going ex-dividend for their respective interim and final dividends.

To be able to receive these dividends investors need to own the shares before and on the morning of the day they go ex-dividend.

Three shares which are about to go ex-dividend are listed below. Should you buy them?

Flight Centre Travel Group Ltd (ASX: FLT)

On Thursday this leading travel agent’s shares will go ex-dividend for its interim fully franked 60 cents per share dividend. After which, eligible shareholders will receive the payout in their nominated accounts on April 13. While I am a fan of Flight Centre, I don’t see a great deal of value in its shares at the moment and would suggest investors resist rushing in and consider waiting to buy in at cheaper price instead.

Japara Healthcare Ltd (ASX: JHC)

This aged care operator’s shares will go ex-dividend on Tuesday of next week for its interim partially franked 4 cents per share dividend. This will then be paid to eligible shareholders on April 30. At the current price Japara’s shares provide a trailing 5% yield, which I think makes it an attractive option for investors. Especially given the long-term tailwinds from Australia’s ageing population that are supporting its future growth.

Vita Group Limited (ASX: VTG)

The shares of this operator of Telstra Corporation Ltd (ASX: TLS) retail stores go ex-dividend on Wednesday of last week for its 4.7 cents per share fully franked interim dividend. Annualised this dividend equates to a massive forward 6.6% yield. But as tempting as that is, I would suggest investors stay clear of Vita Group. While it could potentially have stopped the rot now, I am not overly convinced that the worst is over for this embattled retailer. I would sooner buy Telstra’s shares for its dividend instead of Vita Group.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited and Telstra Limited. 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.

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