---
title: What is a dividend adjustment and how does it affect CFDs?
description: Learn about dividend adjustments and their impact on CFDs.
---

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# What is a dividend adjustment and how does it affect CFDs?

## Learn about dividend adjustments and their impact on CFDs.

**Dividends** are a portion of a company's profits distributed to its shareholders. 

 

When stocks that are part of an index pay out dividends, the overall value of the index will decrease as the money is distributed to shareholders.

 

If you have an open position in your account during a dividend adjustment, rest assured that there will be no actual impact on your funds. We will adjust your account by either debiting or crediting the equivalent amount to ensure that your overall balance remains unaffected. This adjustment is done to accurately reflect the change in the index's value due to the dividend payment.

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