Go-Ahead is due to pay a dividend of 71.9p per share/4.7% on Thurs 8 Nov

• The chart shows the Go-Ahead share price movements since March.
• Go-Ahead pays a 71.9p/4.7% dividend. Currently at 1557p (at time of writing).
• Shares -23.4% from 2018 highs; +17.3% from 2018 lows; +4.6% year-to date.
• All CFD positions held over 4.30pm on Weds, 7 Nov will be paid a dividend at 7:15am on Thurs, 8 Nov.
• Those using Go-Ahead CFDs receive the dividend 12 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 Go-Ahead – An Example

Let’s say you like Go-Ahead and would like to get the 79.1p/4.7% dividend. You decide to buy exposure to £10,000 worth of Go-Ahead using a CFD, at the current price of 1557p. 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 Go-Ahead shares recover to their pre-dividend share price, your profit from the dividend would be £470, 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 Go-Ahead 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.