By 
Discover the power behind leveraging your CFD dividend strategy.
Smart traders know the power of safely leveraging your profits and now you can learn how to do the same.
Today we are going to take a look at some Dividend CFD trading basics and how you can easily secure your dividends while trading Contracts for Difference.
CFD dividends track the underlying market, which means that if a stock you are trading pays a certain dividend, the CFD will also pay that amount.
Suppose you have 500 Rio Tinto CFDs and paid a dividend of $1, then $500 will be credited to your CFD trading account.
When do I get a CFD Dividend Credit?
Unlike the normal ASX stock market, you don’t actually have to wait for the payment date to receive your dividend payment.
Your CFD dividend is usually paid the day after the ex-dividend date, provided you held it through the ex-div date.
Multiply your dividend by 3 times using leverage
To multiply your returns you need to start leveraging your account and CFDs give you this advantage. Most stocks only require a 10% initial margin.
As a result of this leverage, you can dramatically increase your trading profits.
If you leverage your normal position size 3 times, a dividend of around $500 would now convert to a $1,500 credit. Powerful stuff, isn’t it?
Do the tax benefits of postage credits apply to CFDs?
Unlike the normal stock market, CFDs do not pay postage credits.
A stock market company may decide to pay the tax before crediting it, which means that the dividend is fully paid.
CFDs do not receive any postage credit and, on the Australian Stock Exchange, you need to hold a share for 45 days to qualify for the postage credit anyway.
Many successful CFD traders take full advantage of the CFD Dividend game to increase their stock market returns.
Step up and include it in your strategy today.