Dividends: what % do you get?

This is a discussion on Dividends: what % do you get? within the Spread Betting & CFDs forums, part of the Commercial category; Thanks for taking the time and calling them; if I am not mistaken, we arrive to the same conclusion: there ...

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Old Aug 31, 2010, 8:59pm   #9
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Re: Dividends: what % do you get?

alphahunter started this thread Thanks for taking the time and calling them; if I am not mistaken, we arrive to the same conclusion: there is an adjustement on long positions (on shorts, they debit the full amount).

The cut - or adjustment is 15% with IG index.

I was wondering whether that rate was different with other spreadbetting companies.

Thanks
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Old Sep 1, 2010, 1:30am   #10
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Re: Dividends: what % do you get?

Quote:
Originally Posted by alphahunter View Post
Thanks for taking the time and calling them; if I am not mistaken, we arrive to the same conclusion: there is an adjustement on long positions (on shorts, they debit the full amount).

The cut - or adjustment is 15% with IG index.

I was wondering whether that rate was different with other spreadbetting companies.

Thanks
I'm not sure where you are getting your info. from but this is from their site:
If going long - receive 90% (the NET figure) of the dividend on Wednesday morning if you have held the position on the close of market on Tuesday (on ex-div day)

If going short - pay the dividend on Wednesday morning if you have held the position at close of market on Tuesday (on the ex-div day)

This is exactly the same as it works if you held the actual underlying asset, the 10% is tax at source as for real dividends. They don't take any cut themselves.
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Old Sep 3, 2010, 4:28pm   #11
 
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Re: Dividends: what % do you get?

This may help you guys:

http://www.independentinvestor.co.uk...-dividend.html

I think Capital Spreads pay 80% of the dividend if long, and you pay 100% if short.
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Old Sep 3, 2010, 4:41pm   #12
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Re: Dividends: what % do you get?

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Originally Posted by Jaydee View Post
This may help you guys:

http://www.independentinvestor.co.uk...-dividend.html

I think Capital Spreads pay 80% of the dividend if long, and you pay 100% if short.
This is what they say about it, sounds like a complete load of tosh

Quote:
A: The reason that we do this is because of the tax situation. If a client owns a share that is going to have a big dividend (on which he will have to pay 25 to 40% tax) it would be much better for him to sell the shares before ex-div date and take a spread bet out as he would then get 100% of the dividend in a price reduction and then on the day after the ex-div trade back into the shares. We reduce this to 80%. When you take into account spread/dealing costs...etc the 20% reduction in the dividend removes this temptation (!). This might (we believe) make Capital Spreads compliant in attempts at tax avoidance which would at the very least (if it became very prevalent) bring the eye of the taxman very firmly in our direction.

In the real world you have somewhere between 25 and 37 per cent tax on dividends. We believe that the 20% charge plus attendant dealing costs make it less likely that Capital Spreads can be seen to be aiding tax avoidance.
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Old Sep 15, 2010, 12:43am   #13
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Re: Dividends: what % do you get?

alphahunter started this thread Jaydee,
That answers my question about Capital Spread. Thanks.
So so far we've got IG Index:85%. Capital Spread:80%

SanMiguel,
I'm not sure where you got 90% for IG Index, their website says rather vaguely "the dividend adjustment will be credited to your account, minus any tax payable", which turns up to be 85% on UK shares as told over the phone.
Otherwise, I agree with you about, a load of tosh. As an intermediary, they could reclaim the withholding tax but I suppose that's not worth the trouble and most of their clients (us) aren't too bothered either it seems. Except when a large dividened is paid.
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Old Oct 5, 2010, 12:40pm   #14
 
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Re: Dividends: what % do you get?

ETX credits 90% when long and debits 90% when short. That's the best (and fairest) I've found so far.
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Old Jan 28, 2013, 4:53pm   #15
 
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Re: Dividends: what % do you get?

This is quite an old thread and some of the figures above may have changed, but for info I just thought I would add in the current ones for GFT.

On short trades you pay 100% in all cases
On long trades you get 100% on indices (amount index adjusted for ex-D) and on UK and Australian individual shares. For other shares the amount varies by country. For US shares it's 85%.

HTH.
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Old Feb 8, 2013, 11:23pm   #16
 
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Re: Dividends: what % do you get?

Quote:
Originally Posted by Jaydee View Post
ETX credits 90% when long and debits 90% when short. That's the best (and fairest) I've found so far.
Spreadex also credit 90% I think

Im still waiting to be paid the Apple dividend, was it not this week or does ETX hold some different schedule.
I looked up payment in Nov was 2.25 from 2.65 listed
http://investor.apple.com/dividends.cfm
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