When a share goes ex-dividend its price typically falls by about the dividend. A CFD tracks that price, so a broker applies a cash adjustment to keep the contract fair.
For long positions
You receive a credit that approximates the dividend, sometimes reduced by withholding tax. This is not a dividend and may be taxed differently.
For short positions
You pay the equivalent amount. Shorting through a payout date can cost more than expected.
Check the details
Look at how the broker treats withholding tax, index dividends and adjustments, and whether they appear on the statement as a separate line.
Risk warning: Trading forex and CFDs involves a high level of risk and may not be suitable for all investors. You may lose more than your initial investment.
Topicscfddividendsindices