Investec is due to pay a dividend of 11p per share/2.3% on Thurs 29 Nov

• The chart shows the Investec share price movements since April.
• Investec pays a 11p/2.3% dividend. Currently at 496p (at time of writing).
• Shares -25.1% from 2018 highs; +7.1% from 2018 lows; -7.8% 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 Investec CFDs receive the dividend 10 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  Investec – An Example

Let’s say you like Investec and would like to get the 11p/2.3% dividend. You decide to buy exposure to £10,000 worth of Investec using a CFD, at the current price of 496p. 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  Investec shares recover to their pre-dividend share price, your profit from the dividend would be £230, 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 Investec 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.