Weekly Indices Dividends Update: Week 01/07/2024

Please refer to the table below for any upcoming adjustments in dividends on indices for the week beginning July 1st, 2024.

What are dividends?

Dividends refer to the distribution of a company’s profits among its shareholders. In the case of an index dividend, it is calculated based on the individual shares that make up the index and their corresponding weights.

When trading a CFD (Contract For Difference) Index, it is important to note that it does not grant ownership of the underlying stocks or the right to receive dividends from the respective companies.

What is an ex-dividend date?

An ex-dividend date is the last date a shareholder needs to own a stock to be eligible to receive its dividend. If an investor buys the stock after this date, they will not receive the upcoming dividends. This date usually falls one business day before the dividend is paid.

How do dividends affect my position?

In theory, the share price should decrease by the dividend amount since the company has less cash on its balance sheet after paying dividends. This lowers the company’s value. However, to ensure that no trader is affected by the ex-dividend event, Global Prime must make a ‘dividend’ adjustment that corresponds to the stock index’s price movement.

In what way will the dividend be displayed in my account?

The dividend will be shown in your account as an adjustment in cash. If the currency in which the dividend is paid out is not the same as your account’s base currency, it will be converted to your base currency at the current live foreign exchange rate.

What is the reason for me being charged a dividend?

Whether you receive payment or are charged for the dividend amount depends on your position, assuming you are holding the position before the ex-dividend date. Traders who have taken a short position on the index will be charged for the dividend, while those who have taken a long position on the index will receive payment for the dividend.

What could be the reason for not receiving my dividend?

There could be several reasons why you did not receive a dividend, such as:

• You opened your position after the ex-dividend date
• You are trading an index that does not offer dividend payments
• You have a short position on the index

Kindly be aware that the dividend values mentioned in this blog post are only meant as approximations and should not be regarded as absolute or assured. The actual values of dividends can be influenced by several factors, such as market conditions, which may have an impact. Given the constantly changing nature of financial markets, Global Prime retains the discretion to modify or revise any dividend information provided in this blog post without prior notification.

If none of the above reasons apply to your situation, please contact our support team at support@globalprime.com, and we will investigate further on your behalf.