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Trading & Products

Dividends

A dividend is when a company gives away a fraction of their earnings, decided by the board of directors, to a class of its shareholders. Dividends can be issued as cash payments, shares of stock or other property.

A dividend rate may be in dollar amount of each share receives (DPS, dividends per share). In addition, a dividend yield can be quoted in terms of a percent of the current market price. Thus, a company’s net profits can be allocated to shareholders via a dividend or kept within the company as retained earnings. Payments of dividends must be approved by the shareholders and can be shown as a one-time special dividend or as an ongoing cash flow to owners as well as the investors.

Dividends will be credited/debited from your account after the market close the night before the ex-div date.


As a single stock dividends example:

A client is long 10 CFD’s of Twitter and a $0.07 dividend has been declared. If a client holds an open position until the ex-div date they will receive the dividend which equates to a credit of $0.70 (10*$0.07=$0.70).

A client is short 10 CFD’s of Twitter and a $0.07 dividend has been declared. If a client holds an open position until the ex-div date, they will pay the dividend which equates to a debit of $0.70 (10*$0.07=$0.70).
As an indices dividends example:

A client is long 5 CFD’s of WS30 and the constituent companies are paying dividends which equate to 3 index points. If a client holds an open position until the ex-div date they will receive the dividend which equates to a credit of $35(5*7=$35).

A client is short 5 CFD’s of WS30 and the constituent companies are paying dividends which equate to 3 index points. If a client holds an open position until the ex-div date they will pay the dividend which equates to a debit of $35 (5*7=$35).
* For clients with positions in total return indices, dividend values are automatically reflected in the price of the index. E.g. Clients who have positions in CFD DAX30 not be debited/credited as dividends.

 

GKPro and GKFX are registered trademarks of GKFX Financial Services Limited © 2019 GKFX Financial Services Limited – all rights reserved.

The products that GKPro offer on this website, are aimed at professional and institutional clients ONLY. We offer leverage products and the fast moving nature of markets means that you can lose funds rapidly. GKPro is not able to give advice to prospective clients about the appropriateness of our products. Prospective clients are recommended to seek specialist tax and financial advice before investing in any of our products.

RISK WARNING

CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk. Please consider whether you can afford to take high risk of losing your money. See our full Risk Warning and Terms of Business for further details.

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CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk. Please consider whether you can afford to take high risk of losing your money. See our full Risk Warning and Terms of Business for further details.

CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk. Please consider whether you can afford to take high risk of losing your money. See our full Risk Warning and Terms of Business for further details.