Dividend has a particular significance in relation to IG's platform. Here, we define dividend in general investing and explain what it means to you when trading with IG.
CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Dividend definition
A dividend is the portion of profit that a company chooses to return to its shareholders, usually expressed as a percentage.
When a company makes profit, it can choose to either reinvest all of its profit back into the business or pay some portion (or all) of it back to shareholders in the form of a dividend. It is one of the ways in which shareholders can hope to earn money from their investment; if a business does not offer a dividend then investors will hope to be compensated in the form of high share growth.
Dividends usually come in the form of either a one-off or regular cash payments, but can also be paid in property or further shares of stock.
With IG
If you buy a stock with our stockbroking service, then you will receive dividends if the company pays them.
With CFDs, we make an adjustment on equity and stock index positions if a dividend is paid.
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