No New Dividend Payouts Are Latest Sign of Wall Street SluggishUnderstanding Dividends and Dividend Market Futures
A dividend is the distribution of corporate earnings to eligible shareholders.
Dividend payments and amounts are determined by a company's board of directors. Dividends must be approved by the shareholders by voting rights. Although cash dividends are common, dividends can also be issued as shares of stock.
The dividend yield is the dividend per share, and expressed as a percentage of a company's share price.
Many companies - constituents of S&P500 Index still DO NOT PAY dividends and instead retain earnings to be invested back into the company.
The S&P500 Dividend Points Index (Annual) tracks the total dividends from the constituents of the S&P 500 Index. The index provides investors the opportunity to hedge or take a view on dividends for U.S. stocks, independent of price movement, as S&P500 Dividend Index Futures is a market expectation of how many points Dividends Index will collect by the end of year.
Using the S&P500 Dividend Index as the underlying in financial products, investors can hedge or gain exposure to the dividend performance of the S&P500 Index.
Understanding S&P500 Annual Dividend Index Futures
The S&P500 Annual Dividend Index futures (main technical graph is for 2029 S&P500 Annual Dividend Index Futures) calculates the accumulation of all ordinary gross dividends paid on the S&P500 index constituent stocks that have gone ex-dividend over a 12-month period. The amounts are expressed as dividend index points.
The underlying index for S&P500 Annual Dividend Index futures is the S&P500 Dividend Index. The methodology for the index can be found here at S&P Global website.
Dividend index points specifically refer to the level of index points that are directly attributable to the dividends of index constituents. They typically only capture regular dividends and calculate this on the ex-date of the respective constituents within each index.
In general, “special” or “extraordinary” dividends are not included as dividend points in the respective annual dividend indices.
Futures contract Unit is $ 250 x S&P 500 Annual Dividends Index.
Technical considerations on a Galaxy of S&P500 Annual Dividend Index Futures
S&P500 Annual Dividend Index Futures. The year 2029.
Flat 18-months resistance under 80 points has been detected.
S&P500 Annual Dividend Index Futures. The year 2028.
Flat 18-months resistance, also under 80 points has been detected.
S&P500 Annual Dividend Index Futures. The year 2027.
Flat 18-months resistance, also under 80 points has been detected.
Conclusion
The graphs above indicate on a strong flat 80-point resistance over the next 1 to 3 years time span. No new dividends distributions are latest sigh of Wall Street sluggish.
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Best wishes,
@PandorraResearch Team
