How does Pepperstone handle dividends and corporate actions?

If you trade and hold a position in one of our index CFDs or share CFDs past the ex-dividend date of the individual share, or of one of the shares that make up the index, we'll make a cash adjustment to your account to reflect the dividend payment.

If you're long index or share CFDs, we'll credit your account. If you're short, we'll debit your account. The rate of the dividend and the subsequent cash adjustment will reflect underlying market conditions, as well as the value of any withholding tax amounts on the stock. For this reason, the cash adjustment may not be the same as the exact value of the dividend itself.

It's important to remember that while we reflect the payment of dividends via a cash adjustment on your account, you won't own the underlying share or index that you're trading and so you're not entitled to receive the exact value of the dividend on the ex-dividend date.

We don’t take advantage of corporate actions for profit purposes, and we’ll always pass on adjustments made by our liquidity providers to you. Corporate actions include consolidations, rights issues, takeovers, stock splits and share distributions.