UK Index companies paying dividends on Thurs 7 Mar: Ashmore, BHP, Dechra Pharma, Evraz, Genus, Grafton, Hays, Perpetual Income and Growth Inv Tst, Persimmon, Personal Assets Trust, Redrow, Renishaw, Rio Tinto, RSA Insurance, Safestore, St. Modwen Properties, Standard Chartered, Temple Bar Inv. Trust

Source: DividendData.co.uk, Company Announcements; Last Updated: 6 Mar 2019

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 Rio Tinto – An Example

Let’s say you like Rio Tinto and would like to get the 319.5p/7.2% dividend. You decide to buy exposure to £10,000 worth of Rio Tinto 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 Rio Tinto shares recover to their pre-dividend share price, your profit from the dividend would be £720, 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 Rio Tinto 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 10pm on Weds 6 Mar
** All qualifying UK equity CFD positions held over 4.30pm on Weds 6 Mar