UK Index companies paying dividends on Thurs 27 Jun: British Land, Burberry Group, British American Tobacco, Caledonia Investments, Experian, Fidelity China Special Situations, JD Sports Fashion, Paypoint

Source: DividendData.co.uk, Company Announcements; Last Updated: 26 Jun 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 British American Tobacco – An Example

Let’s say you like British American Tobacco and would like to get the 50.7p/1.8% dividend. You decide to buy exposure to £10,000 worth of British American Tobacco 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 British American Tobacco shares recover to their pre-dividend share price, your profit from the dividend would be £180, 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 British American Tobacco 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 26 Jun
** All qualifying UK equity CFD positions held over 4.30pm on Weds 26 Jun