# CFD Ex-Dividend Date Question



## Cakeman (4 February 2011)

Hi, i am wondering if i hold a long CFD position on a particular stock before it goes ex divy (lets say it foes ex divy on the 10th of Feb). Am i able to close my position on the ex divvy date (10th of feb) and still receive the full dividend or do i have to wait until the next day to close out?

Thanks


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## Richard Dale (5 February 2011)

*Re: CFD, Divididends and Ex Divi Date Question*



Cakeman said:


> Hi, i am wondering if i hold a long CFD position on a particular stock before it goes ex divy (lets say it foes ex divy on the 10th of Feb). Am i able to close my position on the ex divvy date (10th of feb) and still receive the full dividend or do i have to wait until the next day to close out?




You can close it out any time it has gone ex (ie EXCLUDING) the dividend - so 10th Feb is fine.

Note that some(most) CFD providers will pay you the dividend on the pay date.


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## Tysonboss1 (5 February 2011)

*Re: CFD Ex-Divdend Date Question*

Sorry for my ignorance,

But I didn't think CFD's would receive dividends since you don't actually own the shares.

P.s I don't trade CFDS and know next to nothing about them.


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## Richard Dale (5 February 2011)

*Re: CFD Ex-Divdend Date Question*

Whilst they are not actual dividends from the company directly to you, your CFD account will be credited with an amount of money proportional to the dividend.  Some CFD providers have different rules regarding franking credits etc. so make sure you read the Product Disclosure Statement carefully regarding _all_ corporate actions.


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## pixel (5 February 2011)

*Re: CFD Ex-Divdend Date Question*



Richard Dale said:


> Whilst they are not actual dividends from the company directly to you, your CFD account will be credited with an amount of money proportional to the dividend.  Some CFD providers have different rules regarding franking credits etc. so make sure you read the Product Disclosure Statement carefully regarding _all_ corporate actions.



 ... and the flip side:
If you're *SHORT *the CFD, you'll be *debited *with the dividend.


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