GK, As I have only resumed trading a few months ago, I called my broker, FPmarkets, last week to ask what would happen to my CFD account when a company pays a dividend when I am long or short on the ex div date.
He advised that when long I would receive the dividend in my CFD account, but I would not be eligible for the franking credits. Similarly, he advised that when short at the ex div date I would need to pay the dividend amount from my CFD account. However, he was quick to add that the SP will typically go down by roughly the dividend amount anyway, hence, my short will increase in value. Not that I have any shorts open at the moment.
Is the above description consistent with your experience with CFDs that are held on the ex div date.
My plan for Monday morning was to look at the pre-open match prices at about 5 to 10 EST and set my lower stops appropriately. However, after your post regarding the CBA dividend, last night I moved my CBA lower stop down by $2 just in case I sleep in on Monday morning or the power is off and I cannot start my computer.
