If you want to receive the next Insurance Australia Group Ltd (ASX: IAG) dividend, then you will have to act fast.
That's because the insurance giant's shares are going ex-dividend on Wednesday.
When a share trades ex-dividend, it means the rights to an upcoming payout are settled.
So, this means you have until the close of play today to buy IAG shares if you want to receive its 10 cents per share partially franked interim dividend.
Should you buy IAG shares?
Opinion remains divided on whether the insurance company's shares are good value at present.
Goldman Sachs currently has a neutral rating and $6.00 price target on its shares. This implies approximately 3.4% downside from current levels. The broker prefers rival Suncorp Group Ltd (ASX: SUN).
It's a similar story at Morgans, with its analysts putting a hold rating and $6.17 price target on the company's shares on Monday.
But there are a couple of bulls out there. The team at Macquarie has an outperform rating and $6.40 price target on its shares. This implies modest upside from current levels.
Citi, on the other hand, sees meaningful upside for investors. It has a buy rating and $6.75 price target on IAG shares.
If Citi's analysts are on the money with their recommendation, it would mean a gain of 8.5% for investors over the next 12 months.
In addition, the broker expects a dividend yield of 4.2% for the year, which stretches the total potential return to almost 13%.
