Dividends
Following a purchase of an equity holding, you are entitled to receive any dividends paid by that company.
Although you are not the beneficial owner of the shares, as the holder of a long Equity
CFD position you are entitled to receive a cash sum similar to any dividend declared by the company while the position is held open (less any tax or administration charges).
Conversely, if you are the holder of a short Equity
CFD you are required to pay a sum equal to the gross dividend, irrespective of whether you hold the underlying position.
The deciding date for the entitlement to a dividend is the same as the ex-dividend date declared by the underlying company. You are advised to check the dates of any impending dividends before entering into Equity
CFD positions, your personal broker at Blue Index can provide you with ex-dividend dates.