Dividends for Share CFDs
Gain exposure to a wide range of companies, such as Apple, Alphabet, Tesla and Alibaba, and take advantage of reporting season with our after-market trading hours and commissions from USD$0.02 per share. Start trading Share CFDs now.
|Company||Exchange||Monday 29/11||Tuesday 30/11||Wednesday 01/12||Thursday 02/12||Friday 03/12|
|Newell Brands Inc||NASDAQ||0.23|
|M&T Bank Corp||NYSE||1.2|
|Estee Lauder Cos Inc/The||NYSE||0.6|
|Pioneer Natural Resources Co||NYSE||3.02|
|DuPont de Nemours Inc||NYSE||0.3|
|Avery Dennison Corp||NYSE||0.68|
|Interpublic Group of Cos Inc/The||NYSE||0.27|
|Expeditors International of Washington Inc||NASDAQ||0.58|
|Old Dominion Freight Line Inc||NASDAQ||0.2|
|Martin Marietta Materials Inc||NYSE||0.61|
|Lockheed Martin Corp||NYSE||2.8|
|Hartford Financial Services Group Inc/The||NYSE||0.385|
|Everest Re Group Ltd||NYSE||1.55|
|Principal Financial Group Inc||NASDAQ||0.64|
|Juniper Networks Inc||NYSE||0.2|
|Interactive Brokers Group Inc||NASDAQ||0.1|
|Home Depot Inc/The||NYSE||1.65|
|Analog Devices Inc||NASDAQ||0.69|
|Baxter International Inc||NYSE||0.28|
|Dominion Energy Inc||NYSE||0.63|
|Arthur J Gallagher & Co||NYSE||0.48|
|Genuine Parts Co||NYSE||0.815|
|Bank of America Corp||NYSE||0.21|
|Molson Coors Beverage Co||NYSE||0.34|
|Perrigo Co PLC||NYSE||0.24|
|Jack Henry & Associates Inc||NASDAQ||0.46|
|UnitedHealth Group Inc||NYSE||1.45|
|DR Horton Inc||NYSE||0.225|
|Great Portland Estates PLC||LSE||0.05|
|Johnson Matthey PLC||LSE||0.22|
|Severn Trent PLC||LSE||0.41|
|Templeton Emerging Markets Investment Trust PLC||LSE||0.01|
|Alliance Trust PLC||LSE||0.06|
|3i Group PLC||LSE||0.19|
|National Grid PLC||LSE||0.17|
|Big Yellow Group PLC||LSE||0.21|
|Royal Mail PLC||LSE||0.07|
|Pets at Home Group Plc||LSE||0.04|
|Spark Infrastructure Group||ASX||0.12|
|Aristocrat Leisure Ltd||ASX||0.37|
|Incitec Pivot Ltd||ASX||0.09|
|Fisher & Paykel Healthcare Corp Ltd||ASX||0.23|
|Technology One Ltd||ASX||0.13|
|Pendal Group Ltd||ASX||0.25|
*Expected dividend adjustments stated in full points per share. Long positions on US Equities will incur a 30% withholding tax adjustment.
What are dividends?
A dividend is a distribution of a portion of a company’s earnings to its shareholders. Dividends are often issued as cash payments if you own the underlying share, although they can also be paid out to investors in the form of additional shares.
Key features of dividends:
- Dividends are an incentive and a form of compensation for the shareholder, normally paid out quarterly or semi-annually
- They're one of the primary reason’s investors are attracted to a business
- Ordinarily, the greater the cash flow of the business and profitability, the more likely a percentage of that capital will be returned to shareholders
- Dividends are a great way to assess the financial health of a business to investors.
Of course, not all companies make these payments. Many high growth companies may choose not to return cash to shareholders but will reinvest the funds into the business if they feel the capital can better reward shareholders through greater earnings growth. In this case, investors are happy to forgo a dividend in the hope of increased capital appreciation.
What does ex-dividend mean?
The ex-dividend date is the day on which the stock no longer includes an entitlement to the upcoming dividend payment.
- It's usually one business day before the dividend is paid out by the company
- Traders opening a position on the ex-dividend date won't be entitled to, or are required to pay, the dividend on their positions
- The value of the stock will fall on this date because of the dividend payout.
What do dividends mean for traders?
When a company pays out a dividend, all things being equal, the share price of that company should fall by that amount. This is because the company has paid cash held on its balance sheet to shareholders and that cash component is a consideration for attributing a theoretical value to the company.
Key points to note:
- Always remember that because dividend payouts are scheduled events, traders aren't able to profit or lose from the ensuing price action
- If a trader has an open position during a dividend adjustment, we know there's no financial impact on your trading account
- We do this by either debiting or crediting you with the same amount you have incurred on the running profit or loss due to the dividend adjustment.
You'll find this in your trading account history, which you can find on your trading platform.
Timing the adjustment
On the market open of ex-dividend date, the shares will decline by the amount of the dividend paid to shareholders.
Gold miner company X is trading at $10 and they pay a $0.50c dividend. Aside from other market variables, X should reopen (its ‘ex-dividend’ date) at $9.50.
The adjustments in share CFDs are more straightforward than equity index CFDs, which work with the same concept, but are slightly different. Find out more here.