Marks & Spencer is due to pay a dividend of 6.8p per share/2.3% on Thurs 15 Nov

• The chart shows the Marks & Spencer share price movements since July.
• Marks & Spencer pays a 6.8p/2.3% dividend. Currently at 299.7p (at time of writing).
• Shares -8.5% from 2018 highs; +14.8% from 2018 lows; -4.8% year-to date.
• All CFD positions held over 4.30pm on Weds, 14 Nov will be paid a dividend at 7:15am on Thurs, 15 Nov.
• Those using Marks & Spencer CFDs receive the dividend 42 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 Marks & Spencer – An Example

Let’s say you like Marks & Spencer and would like to get the 6.8p/2.3% dividend. You decide to buy exposure to £10,000 worth of Marks & Spencer using a CFD, at the current price of 299p. 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 Marks & Spencer 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 Marks & Spencer 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.