Dividends Are Coming. S&P500 Annual Dividend Index FuturesA few months ago I started this research, research of Equity Index Dividend futures, provided by CME Group.
Well, sounds good. Let's continue..
Were you ready or not, but in February, 2024 Meta platforms (META) announced its first-ever in history cash dividend of $0.50 per share to be paid out on quarterly basis.
“We intend to pay a cash dividend on a quarterly basis going forward,” the company said in a release .
Meta stock surged for 20% after that amid other huge reasons.
Alphabet (GOOG) also issued first-ever dividend of 20 cents per share in April, 2024.
The news, announced alongside first-quarter earnings, helped to send the Google parent’s shares up 15%.
Dividend Market as well as Dividend futures trading shines bright.
Understanding 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 2025 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
🤝 Main technical graph (S&P500 Annual Dividend Index Futures 2025) indicates on strong bullish bias. Who knows, maybe at one sunny day even Tesla King, Elon Musk will unleash his E-pocket 😂
🤝 Happy Dividend Market Trading to Everyone! Enjoy!
Dividendideas
How I go about Dividends as a Trader!Q. “In your view how do you go about with dividends as a trader and as an investor? Do you buy to chase dividends when they are declared or not?
A. As a position trader (short term holder), I'm not really interested in buying companies for the dividends released.
That’s because I prefer to make money in the short term with the trades I take, according to my short term strategy and analysis.
But if I did have an investor mentality and I wanted to take advantage of buying companies for dividends, I would do a number of things.
These include:
First I would do my own thorough research and due diligence on the company's overall financial health and performance.
Second, I would look at the dividend history of each company to see more or less what I would have earned over the last couple of years.
Also, if you look at the history of the dividend, it will help you determine whether it's a reliable company to buy.
I personally don't believe it's a good idea to chase dividends with stocks.
I have also never met anyone that makes money chasing dividends in the short term.
The problem is when the dividend is released, the share price tends to drop quite significantly.
And you could end up losing more money because of the share price drop, rather than the money you gain through the dividends.
This means, you could be stuck holding onto the shares and positions for the next couple of weeks or even months, waiting for the price to recover.
Reply: *Hey Timon, thanks for comprehensive respond. It cleared my confusion as a trader when it comes to dividends.
ARCC - BOUGHT @ 19.10Got Filled @ 19.10
ARCC's forward yield is 8.26% vs. its 4Y avg yield of 10.14%.
ARCC's dividend growth over the last 3 years is 1.51%.
Status: ex-dividend coming up
Join the Free Dividend Telegram Room - Link is Below 👇
PACW PACIFIC WESTERN BANK LONG SET UP (11%) DIVIDENDS ATH $62BUY PACW LONG
ENTRY 1 20.50
ENTRY 2 19.86
SL16.00
TP.1 25.50
TP.2 30.86
TP.3 40.50
TP.4 $48.00
San Juan Basin #Royalty #Trust ($SJT) #Dividends Extremely undervalued royalty trust (MC ~ $100 million) which has a dividend yield of almost 12% p.a!
Buy signals @ 1W TF (also confirmed by 1M TF)
- RSI hit 23 and is bouncing upwards
- MFI@8
- StockRSI slowly turning bullish
- MACD will cross bullish soon
- Bullish W-pattern in MACD histogram
- WaveTrend oscillator generated a buy signal!
Heavy Entry between $2.12 - 2.35
TP1 @ 3.98
TP2 @ 5.33
I´m not a financial adviser. For educational purpose only!
CBRL Broadening Top and Upcoming Dividend! (Price target: ~$176)The Broadening Top pattern forms when the price progressively makes higher highs (1, 3) and lower lows (2, 4) following two widening trend lines. The price is expected to move up or down past the pattern depending on which line is broken first. A bit of a toss up since the broadening top formation appears much more frequently at tops than at bottoms, and therefore usually has bearish implications. In this case, however, we see a strong up-trend with an Average Directional Index just shy of the 25 mark. Set limit order above market price to be sure we are looking at a bull broadening top, or for added risk buy the retracement when RSI corrects below 70. For best results take 50% position at each. Consider stop-loss below breakout price.
Added confidence from the fact that Cracker Barrel is recording a $1.20/share dividend on Jan 11th, issued on Feb 5th. Dividend hunters could help drive this trend up. CBRL reports earnings 02/20 BMO and Estimize revenue expectations are 0.77% higher than Wall Street's.
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Stocks that have raised dividends for at least 25 Years11/18/17 - T - I am neutral on T at the moment
based on all time-frames, daily, weekly and monthly.
The previous highs of June 2016, Jan 2017 and
March 2017 were rejected just as they were in sep
and dec 07. Prices have retraced back into
the previous range of 31.70 - 36.30. from
April 2012 to Feb 2016. This is going to be a
key area to watch. I would expect some
sideways trading for a while. If that trading
range is broken the next area of support
is 27.50-23ish. Div & yield are 1.96(5.68%)
T has increased their dividend for 32 consecutive
years. "It also happens to have one of the highest
dividend yields in the entire S&P 500."
(www.dividend.com) Looks like we're
headed into a stage 4, accumulation.
Stocks that have raised dividends for at least 25 Years11/18/17 - JNJ has been on a majestic bullish power trend since 03/09.
You can't be anything but bullish long-term. If we were trying to time the market or at least get a better price, we might want to wait for a 10% pullback to the most recent pivot high of 123-126ish from August 2016. If that area of 123-126 is taken out I would be more bearish than bullish with the next lower target area of 109-113ish. As a strong fundamental company that has increased dividends every year for 54 straight years and is stable during a recession, this is a great company to own for your portfolio. Current Forward Dividend & Yield is 3.36 (2.37%).
Stocks that have raised dividends for at least 25 Years11/18/17 - I am more bullish than bearish long term looking at the weekly and monthly time- frames. I see higher lowes from july 2010, sep 2015, and sept 2017 along with higher highs from oct 2007 and July 2014. The current price of 80.24 is the lowest it has been in the last 6 years. Buy low, sell high, higher div yield then inflation which is at 2%, Over the last 34 years, Exxon’s dividend payment has increased at an average annual rate of 6.4%. 34 consecutive years of increases. Dividend yield: 3.7% ($3.08/share)
