Getting latest data loading

Request a Call to Trade

In addition to the daily Research emails, I would also like to receive the Accendo Markets Weekly Newsletter and occasional Market Report emails highlighting various trading opportunities.
When you enter your telephone number, we may call or message you occasionally with trading opportunities. You can opt out at any time
Home / Dividends / Redrow

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


A dividend trading opportunity for you?

Redrow is due to pay a dividend of 19p per share/3.2% on Thurs, 20th Sept

  • The chart shows the last 6 months share price movements on Redrow
  • 6 month lows 514p; 6-month highs 651p. Currently at 592p (at time of writing).
  • All CFD positions held over 4.30pm on Weds 19 Sept will be paid the dividend at 7.15am on Thurs 20th
  • On the day the shares trade ex-dividend, CFDs receive the full dividend amount
  • Those using Redrow CFDs receive the dividend 54 days earlier than those in shares

Click to enlarge

Trading Redrow – An Example

Let’s say you like Redrow, and would like to get the dividend. You decide to buy exposure to £10,000 worth of Redrow using a CFD, at the current price of 592p. To do this, you need £2,000.

For the purpose of this example, let’s assume Redrow pays a dividend of 3.2%. Shares that go ex-dividend typically fall by the amount of the dividends. Many shares then tend to recover over a period of time, helped by dividends being reinvested, creating a dividend recovery trade opportunity

Assuming Redrow shares recover to their pre-dividend price, your profit from the dividend would be £320, 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 Redrow falls 5% at the same time it pays the dividend. You overall net loss on your £10,000 position would be £500.

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.