Paying for dividends

The equity derivatives dealing community is perennially long dividend risk, which proved profitable when dividends were on the rise, but with the prospect of large-scale dividend cuts looming, managing dividend risk has suddenly become pressing. By John Ferry

risk-0408-26-gif

Company earnings have been in rude health since the bursting of the dotcom bubble in the early part of this decade. Stock prices have climbed virtually non-stop, in some cases hitting all-time highs, while equity investors have been rewarded with bulky dividend payouts. Since August, however, the outlook has been a lot gloomier. The crisis that began in the US subprime mortgage market has spread throughout the economy, with the country teetering on the brink of a recession. Stock prices have

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

What gold's rise means for rates, equities

It has been several years since we have seen volatility in gold. An increase in gold volatility can typically be associated with a change in sentiment and investor behavior. The precious metal has surged this year on increased demand for safe haven…

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here