Example – long position:

Holding a long position of £20 per point in HSBC Holdings Plc will entitle you to the dividend pay-out, providing you hold your position after the close the day before the ex-div date. If the company is going to pay a dividend of 12p per share, since it is a UK company, you will receive 100% of the announced dividend, in which case a total of £240 wil be credited to your account.

For non UK companies, the dividend may be subject to withholding tax. If you had a position in US stock, the announced dividend is subject to 30% withholding tax. Being a UK resident firm, we claim a 15% tax benefit, which we pass on to you and therefore, you will be credited 85% of the announced dividends rather than 70%.