Yes, your CFD provider can adjust the price of the CFD you are currently holding. These Contracts For Difference adjustments in price is applied by your CFD provider can be applied for Share CFDs, Index CFDs and Sector CFDs. These adjustments typically occur as a result of a company dividend and certain corporate actions (for example, bonus rights issues, rights issues and stock splits)
Your CFD broker may adjust your CFD trading account for any dividend release by the company of an underlying reference security. If you are holding a long share CFD position you account will be credited with an amount equal to the net amount of the cash dividend after taxes paid or withheld and does not include any franking credits or distribution. Conversely if you are holding a short CFD position, your CFD trading account will be debited with the amount equal to the Grossed-up dividend (which includes any franking credits attached to the Cash dividend). Also note that your CFD provider may hedge their position when you take a short CFD position by borrowing the Underlying Reference Security. Your CFD broker may also adjust your sector and index CFDs in a similar fashion. (They may or may not do this, and if they do, they have no obligation to inform you). It is also important to take note on the day the dividends are due: their ex-dividend date, and when your CFD provider applies their Share CFD adjustment clauses.
When a corporate action occurs, your CFD broker may replicate the effects of the action on the underlying security to your CFD position. CFD brokers may differ on this point, and it is wise to read or ask your broker on any hypothetical situation that may arise when you are holding a CFD when a potential corporate action is on the horizon. There is an inherent risk here and most CFD providers place the risk and responsibility solely with the CFD trader.