Next is due to pay a dividend of 55p per share/1.1% on Thurs 29 Nov

• The chart shows the Next share price movements since March.
• Next pays a 55p/1.1% dividend. Currently at 5196p (at time of writing).
• Shares -16.7% from 2018 highs; +15.6% from 2018 lows; +14.7% year-to date.
• All CFD positions held over 4.30pm on Weds, 28 Nov will be paid a dividend at 7:15am on Thurs, 22 Nov.
• Those using Next CFDs receive the dividend 20 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  Next – An Example

Let’s say you like Next and would like to get the 55p/1.1% dividend. You decide to buy exposure to £10,000 worth of Next using a CFD, at the current price of 5196p. 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  Next shares recover to their pre-dividend share price, your profit from the dividend would be £110, 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 Next  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.