UPCOMING DIVIDENDS FOR STOCKS & INDICES
Learn more about the dividends here and how it affects your trade.
You may also find a list of upcoming dividends below in order to seize the opportunities in the stock market.
WHAT IS DIVIDEND?
Some companies share a portion of their periodic incomes with their
shareholders. These are called dividends, and they are attractive incentives for
investors, seen as a sign of a profitable fiscal year.
Investors receive dividends based on the number of shares they own. Once the
company announces the decision to pay it out, a specific day called the ex-
the dividend is set. Anyone who owns shares before this point is eligible for the dividend.
But what about traders? Are CFD traders affected by dividends if they are trading stocks or indices? The answer is yes. Even though traders do not actually own the shares of the company, dividends can change a stock CFD’s price in the markets.
HERE IS AN EXAMPLE:
You have a long position with 100 shares of Apple, and a $0.07 dividend is declared. You kept the position open throughout the ex-div date. So, you receive $7 (100*$0.07=$7) in your balance. Assume you are going short this time. After the ex-div date, your balance will be debited for $7 instead.
Note: Shares or indices CFDs usually gain or lose value with the dividend announcement. This results in a sudden price change, and it usually offsets the dividend value credit/debit.
UPCOMING DIVIDENDS
For clients with positions in total return indices, dividends are automatically reflected in the price of the
index. (E.g., GER40 CFDs are not debited/credited as dividends.)
For clients with insufficient margin while holding short positions on an instrument, we will apply for a
temporary margin waiver. Later the dividend value will be applied, and the margin waiver will be removed.
