Dividends for CFD on shares

CFD's holders unlike the real shareholders don't get dividends as they are . When you trade ÑFD, and have open positions, there is so called "Dividend Adjustment", which takes place on ex-dividend date. Long position ("bought") means that the amount is credited, short position ("sold") means that the adjustment amount is deducted. The basis for dividend adjustment equals a dividend per one share.

Example:

On 8 March 2004 (Declared Date) Board of Directors of Verizon Communications (VZ) declares of the payment of quarterly dividends at the amount of $ 0.385/per share; Ex-Date - 06.04.2004, Record Date - 09.04.2004, Pay Date - 03.05.2004.

• if there is a long position per 1 lot (100 shares) on 6 April, the trading account of CFD's holder will be credited:
  100 õ 0.385=38.5$ ;
• if there is a short position per 1 lot (100 shares) on 6 April, the account will be deducted $ 38.5.

Withdrawals and deposits will be in April 6.

The table below shows the date of dividend distribution for the companies which shares are the basic asset for Contracts for Difference (CFD):

Ticker Declared Ex- Date Record Date Pay Date Amount, $ Period #AA 14.07.2006 02.08.2006 04.08.2006 25.08.2006 0.15 Quarter #AIG 17.05.2006 30.08.2006 01.09.2006 15.09.2006 0.165 Quarter #AXP 22.05.2006 05.07.2006 07.07.2006 10.08.2006 0.15 Quarter #BA 26.06.2006 09.08.2006 11.08.2006 01.09.2006 0.3 Quarter #C 17.07.2006 03.08.2006 07.08.2006 25.08.2006 0.49 Quarter #CAT 14.06.2006 18.07.2006 20.07.2006 19.08.2006 0.3 Quarter #DD 26.07.2006 11.08.2006 15.08.2006 12.09.2006 0.37 Quarter #DIS 02.12.2005 08.12.2005 12.12.2005 06.01.2006 0.27 Annual #EK 10.05.2006 30.05.2006 01.06.2006 18.07.2005 0.25 Semi-Anl #GE 08.09.2006 21.09.2006 25.09.2006 25.10.2006 0.25 Quarter #GM 01.08.2006 09.08.2006 11.08.2006 09.09.2006 0.25 Quarter #HD 24.08.2006 05.09.2006 07.09.2006 21.09.2006 0.15 Quarter #HON 28.07.2006 16.08.2006 18.08.2006 08.09.2006 0.226875 Quarter #HPQ 21.07.2006 11.09.2006 13.09.2006 04.10.2006 0.08 Quarter #IBM 25.07.2006 08.08.2006 10.08.2006 09.09.2006 0.3 Quarter #INTC 13.09.2006 03.11.2006 07.11.2006 01.12.2006 0.1 Quarter #IP 11.07.2006 16.08.2006 18.08.2006 15.09.2006 0.25 Quarter #JNJ 18.07.2006 25.08.2006 29.08.2006 12.09.2006 0.375 Quarter #JPM 16.05.2006 03.07.2006 06.07.2006 31.07.2006 0.34 Quarter #KO 20.07.2006 13.09.2006 15.09.2006 01.10.2006 0.31 Quarter #MCD 21.09.2005 10.11.2005 15.11.2005 01.12.2005 0.67 Annual #MMM 15.08.2006 23.08.2006 25.08.2006 12.09.2006 0.46 Quarter #MO 30.08.2006 13.09.2006 15.09.2006 10.10.2006 0.86 Quarter #MRK 25.07.2006 30.08.2006 01.09.2006 02.10.2006 0.38 Quarter #MSFT 13.09.2006 14.11.2006 16.11.2006 14.12.2006 0.1 Quarter #PFE 22.06.2006 09.08.2006 11.08.2006 05.09.2006 0.24 Quarter #PG 11.07.2006 19.07.2006 21.07.2006 15.08.2006 0.31 Quarter #T 30.06.2006 06.07.2006 10.07.2006 01.08.2006 0.3325 Quarter #UTX 14.06.2006 16.08.2006 18.08.2006 10.09.2006 0.265 Quarter #VZ 07.09.2006 05.10.2006 10.10.2006 01.11.2006 0.405 Quarter #WMT 02.03.2006 13.12.2006 15.12.2006 02.01.2007 0.1675 Quarter #XOM 26.07.2006 10.08.2006 14.08.2006 11.09.2006 0.32 Quarter

Note:

Ex- Date - those investors who bought shares before this date have the right to get dividends;

Record Date - the day of dividends distribution among the shareholders;

Payment Date - the day when the cheques for the dividends are sent by post or transferred to the shareholders' banks accounts.