alphahunter
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Well guys, I know - dividends is not the most exciting topic but there are some strategies that can be played around.
And a few cos are returning large amount cash to shareholders by way of special dividends; not all spreadbetting companies will credit the full amount of the dividend if you are long, although they would charge you the full amount if you are short. Obvioulsy that does not apply to CFDs and direct holdings (you get the full amount but then you pay income tax on it).
That does not matter that much for regular (read small) dividends. But in the case of Heritage Oil for instance, I knew that IG Index would retain 15p out of the 100p special dividend for each 450p-worth share, equivalent to 3% instant loss of value even before trading cost/spread. That's why I did not go for it at that time (independently of the investment case proper).
Yet it can be a viable short-term strategy to go for special dividends (not the purpose of that thread) provided they are credited in full. Hence my question.
IG Index credits 85% of a dividend. Which spreadbetting platform do you use and much of the dividend do you get?
Thanks.
And a few cos are returning large amount cash to shareholders by way of special dividends; not all spreadbetting companies will credit the full amount of the dividend if you are long, although they would charge you the full amount if you are short. Obvioulsy that does not apply to CFDs and direct holdings (you get the full amount but then you pay income tax on it).
That does not matter that much for regular (read small) dividends. But in the case of Heritage Oil for instance, I knew that IG Index would retain 15p out of the 100p special dividend for each 450p-worth share, equivalent to 3% instant loss of value even before trading cost/spread. That's why I did not go for it at that time (independently of the investment case proper).
Yet it can be a viable short-term strategy to go for special dividends (not the purpose of that thread) provided they are credited in full. Hence my question.
IG Index credits 85% of a dividend. Which spreadbetting platform do you use and much of the dividend do you get?
Thanks.
