Accuracy of dividend adjustments

[Guest Tony]

Hi

For an index (say FTSE 100), how do you know the adjustment made by a provide like IG  is correct? Is there transparency around this?

Also, if you are long, I believe IG returns 90% of the dividend? Since 16/17 tax year, the 10% notional pension credit was removed so why not payout 100%? Seems like they are profiting from this?

Thanks. 

[CharlotteIG]

21 hours ago, Guest Tony said:

Hi

For an index (say FTSE 100), how do you know the adjustment made by a provide like IG  is correct? Is there transparency around this?

Also, if you are long, I believe IG returns 90% of the dividend? Since 16/17 tax year, the 10% notional pension credit was removed so why not payout 100%? Seems like they are profiting from this?

Thanks. 

Thanks for your post. 

The dividend adjustment is made on the ex dividend date of stocks that make up the FTSE100 that are giving out a dividend. 

If you're long the price will move down and you're credited the adjusted amount. If you look at the closing price of the previous candle stick and the open of the new one you will be able to see that the price adjustment and loss are the same. 

We have client trading both long and short, we make this adjustment at the same time, no one wins or loses they're purely adjustments. 

If you want to find out why the adjustments are the figures we adjust them by you can email us and ask for a breakdown on which stocks are giving out dividends or you can search for this yourself. 

All the best

 

[Guest Tony]

Thank CharlotteIG, I think I'm right in saying that if long 10% is deducted for tax? Can you please confirm exactly what tax this is? there is no UK tax at source for dividend? Thank you