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Home / Dividends / UK Index Dividend Recovery

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

UK Index Dividend Recovery

A dividend trading opportunity for you?

UK Index companies which paid dividends on Thurs 27 Jun: British Land, Burberry Group, British American Tobacco, Caledonia Investments, Experian, Fidelity China Special Situations, JD Sports Fashion, Paypoint

UK Index companies which paid dividends on Thurs 20 Jun: B&M European Value Retail, Big Yellow Group, Cineworld, Compass, Land Securities, NewRiver REIT, Stobart, Tate & Lyle, TR Property Investment Trust, United Utilities

Source: Bloomberg; Last updated: 27 Jun 2019

  • Shares typically fall by the amount of the dividend being paid. Many shares then tend to recover over a period of time, helped by dividends being reinvested, creating a dividend recovery trade opportunity.
  • Our table highlights whether the shares have fallen further following the dividend payment (net loss), or whether they have, in fact, begun to recover and close the gap (net profit).
  • * Yields relate to that particular dividend as percentage of ex-div share price, not the annual yield.

Click to enlarge

Trading Persimmon – An Example

Let’s say you like Persimmon and would like to get the 110p/5.4% dividend. You decide to buy exposure to £10,000 worth of Persimmon using a CFD. To do this, you need £2,000.

Shares that go ex-dividend typically fall by the amount of the dividend on the ex-dividend date. Many shares then tend to recover over a period of time, helped by dividends being reinvested, creating a dividend recovery trade opportunity.

Assuming Persimmon shares recover to their pre-dividend share price, your profit from the dividend would be £540, from your initial investment of £2,000.

Be aware that the share price could fall or rise, which could mean that you make an overall loss or increased profit on the position. For example, let’s assume that Persimmon falls 2% at the same time it pays the dividend. You overall net loss on your £10,000 position would be £200.

This is provided for information purposes only. It should not be taken as a recommendation.

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.


Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.

Prepared by Michael van Dulken, Head of Research
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
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