The frequency and dates for the Dividend payouts and charges are different for all companies. At BUX it always takes place on the ex-dividend date. You can find this ex-dividend date on the corporate website of a company.
When does your position need to be open in order for you to be entitled to dividends?
As you must own a stock before its ex-dividend date in order to be eligible to receive its next dividend, you will need to open your trade before the market close of the day before.
For example, you hear that Hewlett Packard Enterprise Company's ex-dividend date is on December 12th. To receive the dividend you must open a position before 20:59 (GMT) of the day before.
How do the payments/charges work:
If a company you are investing in pays or charges dividends on the ex-dividend date it will automatically be added or removed from your account. If you choose the arrow "Up", you're receiving Dividend and if you choose the arrow "Down" you'll be paying Dividend (for more info about this, please read How does BUX handle dividends?). You can see the amount paid or received in your History which is located in the cash tab, in your Green Positions screen. If your position is still open, you can also see this amount when you open your position in your Green Position screen and click on 'Net Result'.
An example of how the payment/charges work:
Let's say that Barclays shares are at 100, and the dividend the company pays out is £3.5 per share. If you have invested 100 with the arrow up, then you technically would have one whole share. This means that your dividend would be £3.5.
Unfortunately, though, prices are never usually even to the point. So to find the dividend you would need to do some calculations dependent on the price.
Let's say Barclays price is 245.58 per share and you invested 100, then you wouldn't own a whole share, you would only own 40.72% of a share because:
100 / 245.58 (x 100) = 40.72%
Then 3.5 × 0.4072 = 1.4
So your dividend for investing £100 would be £1.4.
These calculations are also the same as paying dividends.
Take a look at our blog for a funny and clear explanation of how does it work.
If you have any further questions in regards to this, please feel free to contact us via email at BUX Support.