# DIVIDENDS FOR CASH INDICES AND SHARES CFDS

## What is a Dividend?

A dividend is a distribution of a company’s earnings to its shareholders and owners, usually in the form of cash payment. When a company generates profits, those profits can be either paid out to the shareholders as a dividend or reinvested back in the business.

### How a dividend affects the price of the Cash Index or Share CFD?

When a company pays out a dividend, the price of its share will fall by the amount of the dividend on the ex-dividend date. The Index that includes the underlying company will also decrease by the equivalent weighted average value of the same dividend.

### How to calculate Dividends?

Traders who hold a long position will receive the dividend amount, calculated as follow:

Lots x Contract Size x Dividend Adjustment

Traders who hold a short position will pay the dividend amount, calculated as follow:

Lots x Contract Size x Dividend Adjustment

### How my position will be affected from the Dividend adjustment?

easyMarkets will handle the dividend adjustment using the swaps mechanism.

Example:

Let’s assume the below:

1) There is an upcoming dividend adjustment of 1.5 USD for US Tech Index. Hence the price of the index is expected to fall on the ex-dividend date.
2) The closing rate of the Index before the ex-dividend date is 12500.00.
3) Assuming no other market forces, the Index will open at 12498.5 on the ex-dividend date.

The daily swaps values of the Index for the current week are:

MT4/MT5 Swap Long: - 2.46

MT4/MT5 Swap Short: + 0.72

easyMarkets proprietary platform/App Swap Long: - 0.0197%

easyMarkets proprietary platform/App Swap Short: + 0.0058%

On the day before the ex-dividend date, the swaps for the Index will be adjusted as follow:

MT4/MT5 Swap Long: -2.46 + 1.50 = - 0.96

MT4/MT5 Swap Short: +0.72 – 1.50 = - 0.78

easyMarkets proprietary platform/App Swap Long: -0.0197% + (0.012%) = - 0.0077%

easyMarkets proprietary platform/App Swap Short: +0.0058% - (0.012%) = - 0.0062%

* In our proprietary platforms Swap is named as Rolling fee

** Islamic accounts trading a share or a cash index on ex-dividend date, the dividend amount will be added or deducted directly from their balance

## This Week

Swipe

Instrument
Monday
09/09
Tuesday
10/09
Wednesday
11/09
Thursday
12/09
Friday
13/09
US 500
0.58
0.15
0.06
0.13
0.94
US 30
-
6.9
-
2.63
3.19
US Tech
1.17
0.16
-
0.47
2.5
UK 100
0.72
-
-
1.18
-
Germany 40
-
-
-
-
-
EU Stocks 50
-
-
-
-
-
Swiss 20
-
-
-
-
-
Australia
4.19
0.6
2.07
19.49
1.34
Japan 225
-
-
-
-
-
Hong Kong 50
7.75
1.96
9.96
22.73
4.2
China 50
4.08
-
-
-
5.25
France 40
-
-
-
-
-
Italy 40
-
-
-
-
-
Spain 35
-
1.17
-
-
-
CSL
2.203
-
-
-
-
GOO
0.2
-
-
-
-
BHP
-
-
-
2.85
-
NVD
-
-
-
0.01
-
CNO
-
-
-
0.74
-
CCA
-
-
-
-
0.49

#### Week 5 | 29 January - 02 February 2024

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