Dividend Adjustment Calendar
What is a Dividend Adjustment Calendar?
It’s is a schedule, that lists ex-dividend dates and corresponding adjustment amounts for index and stock CFDs.
It helps traders understand how dividend payments from underlying companies affect their positions in these financial instruments.
Key aspects of a Dividend Adjustment Calendar:
- Ex-Dividend Date:This is the date on or after which a new shareholder is no longer entitled to the upcoming dividend payment.
- Dividend Adjustment:When a company pays dividends, the stock or index price typically decreases by the amount of the dividend to reflect the value being distributed. This decrease in price is the dividend adjustment.
- Impact on CFDs:For long positions (buying to profit from price increases), the dividend adjustment is credited to the client’s account. For short positions (selling to profit from price decreases), the dividend adjustment is debited from the client’s account.
- Purpose:The calendar allows traders to anticipate and account for the impact of dividend payments on their open positions, especially in CFDs, which are leveraged instruments.
- Information Provided:Dukascopy’s website provides information on dividend announcements, declaration dates, ex-dividend dates, payment dates, and adjustment amounts.
- Ex-Dividend Date Significance:The ex-dividend date is crucial for determining who is eligible to receive the dividend. If a share is purchased before the ex-dividend date, the new owner receives the dividend. If it’s purchased on or after the ex-dividend date, the previous owner receives the dividend.
Dividend adjustments are applied to positions in index and stock CFDs when the underlying company makes dividend payments to its shareholders. A position is affected by such an adjustment if it passes the respective ex-dividend date – that is, if it remains open at the settlement time of the trading day prior to the ex-dividend date.
For long (buy) positions the dividend adjustment is credited on the associated trading account, but for short (sell) positions – written off from the account. The amount credited to the holders of the long positions is reduced by the tax rate set by the country of the index or stock.
This shows the adjustment amounts in the quote currency of the corresponding CFD instrument paid (Long) or charged (Short) per one contract. The calendar includes both upcoming and past data. The future dividend adjustments published up to one week prior to the ex-dividend date are forecasts and may be subject to change.
Kevin George is an active trader of stocks, forex, commodities and crypto with over 15 years of market experience. He hold a master's degree in finance and mix microeconomic studies of company financials with a big-picture macroeconomic view.
Kevin earned a bachelor's degree from Robert Gordons University in Scotland. He returned later to earn his master's degree in finance.
Kevin has written for investopedia, Seekingalpha with his resume on Muckrack and LinkedIn