Tuesday, April 7, 2020

S&P 500 dividend futures signal much lower payouts ahead

Dividends from companies in the S&P 500 Index are headed much lower, if futures trading is any guide. Contracts tied to payouts for a 12-month period ending in December pointed toward a 28% drop, according to data compiled by Bloomberg and S&P Dow Jones Indices LLC. The outlook is based on the S&P 500 dividend futures’ Monday close of $42.10 and S&P 500 companies’ payout for the 12 months ended last December. The futures dropped as much as 37% from a high in February. Contracts for the 12 months ending in December 2021 fared even worse, tumbling as much as 47% from their February high.

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