Dividends are a distribution of a portion of a company’s earnings to its shareholders. Dividends can be issued as cash payments, shares of stock or other equivalent property.
HOW DO THEY IMPACT YOUR POSITIONS?
A dividend causes the share price to fall, as the company is moving money from itself to its shareholders. Dividend payouts from the constituent shares of an index will generally cause the index price to fall. This is because the value of an individual share tends to drop on its ex-dividend date by the amount of the declared dividend. Positive or negative adjustments are applied on Cash Index CFD products to neutralize the impact of the drop in the index price.
The above adjustments are based on index points. For details of each Index Cash CFD product, kindly refer to our Product Schedule. The information supplied serves as a guide only and is subject to change without notice. It is not intended to be trading or investment advice. Axi cannot be held accountable for inaccuracies or any losses incurred as a result of this information.