Brewin Dolphin is due to pay a dividend of 12p per share/3.6% on Thurs 10 Jan

• The chart shows Brewin Dolphin share price movements since mid-June.
• Brewin Dolphin pays a 12p/3.6% dividend. Currently at 328p (at time of writing).
• Shares trade at 2019 highs; +3.8% from 2019 lows; +1.8% year-to date
• All CFD positions held over 4.30pm on Weds, 9 Jan will be paid a dividend at 7:15am on Thurs, 10 Jan.
• Those using Brewin Dolphin 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 Brewin Dolphin – An Example

Let’s say you like Brewin Dolphin, and would like to get the 12p/3.6% dividend. You decide to buy exposure to £10,000 worth of Brewin Dolphin using a CFD, at the current price of 328p. 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 Brewin Dolphin shares recover to their pre-dividend share price, your profit from the dividend would be £360, 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 Brewin Dolphin 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.