UK Index companies paying dividends on Thurs 21 Mar: British American Tobacco, Close Brothers, Crest Nicholson, Domino’s Pizza, F&C Commercial Property Trust, Hammerson, HgCapital Trust, Meggitt, Phoenix Group, Royal Bank of Scotland, SEGRO

Source: DividendData.co.uk, Company Announcements; Last Updated: 20 Mar 2019

Long/Short  UK 100  CFD positions credited/debited 11.00pm Weds *
Long/Short equity CFD positions credited/debited 7.15am Thurs**

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Trading RBS – An Example

Let’s say you like RBS and would like to get the 11p/4.1% dividend. You decide to buy exposure to £10,000 worth of RBS 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 RBS shares recover to their pre-dividend share price, your profit from the dividend would be £410, 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 RBS 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.

* All qualifying UK 100 Index CFD positions held over 10pm on Weds 20 Mar
** All qualifying UK equity CFD positions held over 4.30pm on Weds 21 Mar