Index CFD Dividends
Check dividend adjustment amounts applied to index CFD holdings. Essential information is provided to support effective trading strategies.Check dividend adjustment amounts applied to index CFD holdings.
Essential information is provided to support effective trading strategies.
What are dividends?
Dividends are distributions of a company’s net profits allocated to its shareholders. While most dividends are paid in cash, some may also be issued in the form of additional shares.
•At Orbis Securities, dividend adjustments on index CFDs are automatically reflected in client accounts between 00:00 and 00:55 (GMT+3) server time.
What are dividends?
Dividends are distributions of a company’s net profits allocated to its shareholders. While most dividends are paid in cash, some may also be issued in the form of additional shares.
•At Orbis Securities, dividend adjustments on index CFDs are automatically reflected in client accounts between 00:00 and 00:55 (GMT+3) server time.
Dividends on Long Positions
Dividend amounts are credited to client accounts based on the official dividend date of the underlying instrument.
Dividends on Short Positions
Dividend amounts are credited to client accounts in line with the official dividend date of the underlying instrument.
Upcoming Index CFD Dividends
• Expected dividend adjustments are displayed in index points per contract.
• The figures shown represent estimates provided by Bloomberg. Final adjustment amounts may differ from the values initially indicated.
Key Features of Dividends
Shareholder
Reward
Companies distribute a portion of profits to shareholders, typically on a quarterly or semi-annual basis.
Attractive
to Investors
Consistent dividend payments appeal to long-term investors and serve as an incentive to hold shares.
Indicator of Financial Health
Stable dividend policies often signal strong cash flow and management confidence.
Contrast with Growth Stocks
High-growth companies typically reinvest profits to pursue capital gains rather than paying dividends.
Ex-dividend date
The ex-dividend date is the cutoff date on which eligibility for dividend rights expires. It is usually set one business day before the official dividend payment date. Only positions held before this date are entitled to dividend adjustments. On the ex-dividend date, stock prices are typically adjusted downward by the dividend amount. Positions opened after this date are not eligible for dividend-related benefits or costs.
Dividend impact on investment
Price
Adjustment
Dividend distributions reduce corporate capital and stock prices are generally adjusted by the dividend amount.
Index
Implications
Dividend payments by index constituents (including CFDs) can affect overall index values with large-cap companies exerting greater influence.
Automatic Account Adjustment
When dividend events occur on open positions, Orbis automatically credits or debits the equivalent amount to client accounts, ensuring a neutral effect on trading positions.