Of course, you can trade stocks using CFDs almost the same way as if you will trade them directly. Most of the brokers allow you to recieve dividends, but this particular question you should clarify with the particular broker you are going to work with. By the way, your position price would be reduced on the amount paid as dividends. This mechanism is great for long term value investors interested in the possibility to widraw some profit without covering the position while it is almost useless for acitve daytraders or even swing/mid-term traders (unless you have no special strategy based on dividends).
Trading stocks with CFDs has both advantages and disadvantages. The main advantages are:
- it is quite easy to open an account and start trading,
- there are no intraday trades limits for non-professional investors as in stocks.
At the same time, there are some disadvatages that could be substantial for some traders. They are:
- you actually buy nothing - CFDs do not give you any rights related to company,
- the limited number of stocks available for CFD trading (mostly large companies),
- the possible conflict of interest (since you are trading against your broker).
Thus, each trader should evaluate all pros and cons himself and make a reasonable decision.