A dividend trading opportunity for you?

GVC Holdings is due to pay a dividend of 16p per share/1.7% on Thurs, 20th Sept

• The chart shows the last 8 months of GVC Holdings’ share price movements.
• GVC pays a 16p dividend. Currently at 967p (at time of writing).
• Shares -17.9% from 2018 highs; +14% from 2018 lows; +4.5% year-to date
• All CFD positions held over 4.30pm on Weds, 19 Sept will be paid a dividend at 7:15am on Thurs, 20 Sept.
• Those using GVC Holdings CFDs receive the dividend 35 days earlier than those in shares.
• On the day shares trade ex-dividend the share price tends to drop by the same amount

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Trading GVC Holdings – An Example

Let’s say you like GVC Holdings, and would like to get the 16p/1.7% dividend. You decide to buy exposure to £10,000 worth of GVC Holdings using a CFD, at the current price of 967p. To do this, you need £2,000.

Shares that go ex-dividend typically fall by the amount of the dividend (16p) 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 GVC Holdings shares recover to their pre-dividend share price, your profit from the dividend would be £160, 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 GVC Holdings 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.