UK Index companies paying dividends on Thurs 27 Dec: British American Tobacco, BT, Dixons Carphone, Halma, NewRiver REIT, RPC Group, Schroder Asia-Pacific Fund, Stobart

Source: DividendData.co.uk, Company Announcements; Last Updated: 24 Dec 2018

Long/Short  UK 100  CFD positions credited/debited 11.00pm Weds *
Long/Short equity CFD positions credited/debited 7.15am Thurs**

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Trading BT – An Example

Let’s say you like BT and would like to get the 4.62p/1.9% dividend. You decide to buy exposure to £10,000 worth of BT using a CFD. To do this, you need £2,000.

Shares that go ex-dividend typically fall by the amount of the dividend on the ex-dividend date. Many shares then tend to recover over a period of time, helped by dividends being reinvested, creating a dividend recovery trade opportunity.

Assuming BT shares recover to their pre-dividend share price, your profit from the dividend would be £190, from your initial investment of £2,000.

Be aware that the share price could fall or rise, which could mean that you make an overall loss or increased profit on the position. For example, let’s assume that BT falls 2% at the same time it pays the dividend. You overall net loss on your £10,000 position would be £200.

This is provided for information purposes only. It should not be taken as a recommendation.

* All qualifying UK 100 Index CFD positions held over 12.50pm on Mon 24 Dec
** All qualifying UK equity CFD positions held over 12.30pm on Mon 24 Dec