The S&P 500 Dividend Points Index (Annual) futures contract (SDA) is $250 times the S&P 500 Annual Dividend Points Index with the nearest 11 Decembers available for trading. The S&P 500 Dividend Points Index (Annual) (SPXDIVAN) tracks the accumulation of dividends on an annual basis and resets to zero after the expiration of the leading December contract. Dividend Futures versus Estimated Dividend. As of May 31, 2019, the December 2029 S&P 500 Annual Dividend Futures contract priced to 67.4 versus 57.9 for the 2019 contract. This implies a modest 1.5% annualized dividend growth rate over the next 10 years (see Exhibit 2). In finance, a dividend future is an exchange-traded derivative contract that allows investors to take positions on future dividend payments. Dividend futures can be on a single company, a basket of companies, or on an Equity index. They settle on the amount of dividend paid by the company, the basket of companies, How Dividend Futures Work. If a long position in the dividend futures contract is held to expiration, the investment return depends on the difference between the index dividends per share actually paid on the S&P 500 and the price of the dividend futures at the time of the initial investment. As of May 31, 2019, the December 2029 S&P 500 Annual Dividend Futures contract priced to 67.4 versus 57.9 for the 2019 contract. This implies a modest 1.5% annualized dividend growth rate over the What are Dividend Futures? Dividend Futures are futures contracts based on the dividends payoff of the stock index constituents over one calendar year (e.g. December contract). Dividend futures allow equity investors to trade on the expected dividend outlook; hedge their dividend exposure or benefit from arbitrage opportunities related to dividend performance. The owner of a long futures contract does not receive dividends, hence this is a disadvantage compared to owning the underlying stock. If the dividend is increased, and the future price would not change, there is an arbitrage possibility.
Globex Futures Auto Refresh Is All market data contained within the CME Group website should be considered as a reference only and should not be used as validation against, nor as a complement to, real-time market data feeds. The fair value and futures price will fluctuate during the course of the trading day. Futures contracts trade on the Chicago Mercantile Exchange while individual stocks as components of the S&P 500 are trading at dispersed stock exchanges around the country. Therefore, there are often discrepancies between the two.
A dividend future is a forward contract traded on an organized market, allowing taking a position on the amount of dividends paid by a publicly traded company
As of May 31, 2019, the December 2029 S&P 500 Annual Dividend Futures contract priced to 67.4 versus 57.9 for the 2019 contract. This implies a modest 1.5% annualized dividend growth rate over the What are Dividend Futures? Dividend Futures are futures contracts based on the dividends payoff of the stock index constituents over one calendar year (e.g. December contract). Dividend futures allow equity investors to trade on the expected dividend outlook; hedge their dividend exposure or benefit from arbitrage opportunities related to dividend performance.
Dividend futures typically settle against the value of company or index level dividends actually paid in a calendar year. For example, ENI 2018 dividend futures will ultimately settle against the value of dividends the company pays in 2018. 2 In order to provide positive expected returns for buyers, dividend futures often trade at a discount to consensus analyst dividend expectations. The Nymex gold futures contract calls for the delivery of 100 troy ounces of gold (0.995 fineness), and the contract trades in terms of dollars and cents per troy ounce. Annual Dividend Rate: The indicated annual dividend, calculated from the latest dividend. For ETFs, the annual dividend is for the trailing twleve months.