WH Smith is due to pay a dividend of 38.1p per share/2.2% on Thurs 10 Jan

• The chart shows WH Smith share price movements since late May.
• WH Smith pays a 38.1p/2.2% dividend. Currently at 1758p (at time of writing).
• Shares -1% from 2019 highs; +3.2% from 2019 lows; +2.3% year-to date
• All CFD positions held over 4.30pm on Weds, 9 Jan will be paid a dividend at 7:15am on Thurs, 10 Jan.
• Those using WH Smith CFDs receive the dividend 16 days earlier than those using shares.
• On the day the shares trade ex-dividend the share price tends to drop by the same amount

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Trading WH Smith – An Example

Let’s say you like WH Smith, and would like to get the 38.1p/2.2% dividend. You decide to buy exposure to £10,000 worth of WH Smith using a CFD, at the current price of 1758p. 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 WH Smith shares recover to their pre-dividend share price, your profit from the dividend would be £220, 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 WH Smith 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.