What exactly is a dividend?

Every year, public firms disclose how much earnings they will distribute to a certain group of stockholders. This is known as a dividend. They can take numerous forms, including cash, more shares, or other assets.

Dividends will be credited/deducted from your account after the market closes if you trade stocks. CFDs on shares typically increase or lose value prior to the expected announcement, and this is reflected in the market. As a result, the price rise or drop generally cancels out the dividend credit/debit.