What does dividend mean? The dividend is an economic terminology. This is a part of company’s profit that is paid to shareholders. Payment is made on a quarterly, semi-annual, or annual basis. The payment level of firms is different. Shares of shareholders are calculated by board of directors. Payment date is the date that shares transferred. Preliminary date is determined by the date before the registration date. Only shareholders who invest to stock before preliminary date, are gotten dividend.
With Contract for Difference CFD (or CFD XETRA): the dividend payment has a different mode of payment. People who have CFD are gotten dividend adjustment. It has same payment date with shareholders.
According to estimated result, the candidates of the payments and debts are determined. If the customers buy order, dividend adjustment will be written into their account. If they sell order, it will be debited into their account.
The dividend rate is calculated by the below formula:
Volume * Dividend Amount = Dividend Adjustment
(Volume: Order volume before payment date)
On May 13th, 2019, Bayerische Motoren Werke AG board of directors (#BMW) pay quarterly dividend (€ 3.2/share).
Before payment date, you buy order 100 #BMW’s shares. Now, you can calculate your dividend payment by the above formula:
100 (volume of shares) * 3.2 (dividend amount) = € 3200 (dividend adjustment)
So, you can get € 3200.
Corresponding, dividend adjustment is calculated with the same formula. If you sell order #BMW’s shares before May 13th 2019, your account will be debited € 3200.