A dividend trading opportunity for you?

UK Index companies paying dividends next Thursday (27th): Morrison Supermarkets, Hargreaves Lansdown, Smurfit Kappa, Bovis Homes, Kier Group, IG, Essentra, Games Workshop, John Laing, Mercantile Inv. Trust

Source: DividendData.co.uk, Company Announcements; Last Updated: 26 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 Bovis Homes – An Example

Let’s say you like Bovis Homes and would like to get the 64p/5.6% dividend. You decide to buy exposure to £10,000 worth of Bovis Homes 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 Bovis Homes shares recover to their pre-dividend share price, your profit from the dividend would be £560, 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 Bovis Homes 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 26 Sept
** All qualifying UK equity CFD positions held over 4.30pm on Weds 26 Sept