UK Index companies paying dividends on Thurs 4 Apr: CLS, ConvaTec, Direct Line, DS Smith, F&C Inv. Trust, Ferguson, Finsbury Growth & Inc. Trust, Hikma, IMI, James Fisher, Lloyds, Man Group, Melrose, Moneysupermarket.com, Murray Int. Trust, Pearson, RIT Capital, Smith & Nephew, Smiths, Softcat, St. James’s Place, Taylor Wimpey, TP ICAP, Travis Perkins, Tullow Oil

Source: DividendData.co.uk, Company Announcements; Last Updated: 3 Apr 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 Direct Line – An Example

Let’s say you like Direct Line and would like to get the 22.3p/6.3% dividend. You decide to buy exposure to £10,000 worth of Direct Line 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 Direct Line shares recover to their pre-dividend share price, your profit from the dividend would be £630, 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 Direct Line 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 3 Apr
** All qualifying UK equity CFD positions held over 4.30pm on Weds 3 Apr