A dividend trading opportunity for you?

UK Index companies paying dividends this week: GVC, Redrow, Crest Nicholson, Rank, International Public Partnership, Playtech, Petrofac, Drax, Unite, Renishaw, Sanne Group, Sophos Group

Source: DividendData.co.uk, Company Announcements; 19 Sep 2018

Long/Short  UK 100  CFD positions credited/debited 10.55pm Weds*
Long/Short equity CFD positions credited/debited 7.15am Thurs**

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Trading GVC Holdings – An Example

Let’s say you like GVC Holdings, and would like to get the 16p/1.7% dividend. You decide to buy exposure to £10,000 worth of GVC Holdings using a CFD, at the current price of 967p. To do this, you need £2,000.

Shares that go ex-dividend typically fall by the amount of the dividend (16p) 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 GVC Holdings shares recover to their pre-dividend share price, your profit from the dividend would be £160, 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 GVC Holdings falls 5% at the same time it pays the dividend. You overall net loss on your £10,000 position would be £500.

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 19 Sept
** All qualifying UK equity CFD positions held over 4.30pm on Weds 19 Sept