Dividend Futures

Dividend Futures (DIVF) are derivative contracts used to hedge against dividend risk that accompany trade in Single Stock Futures (SSF’s). These contracts are booked in conjunction with a relevant SSF and offer a simple transaction to enable investors to protect themselves against any perceived dividend risk.

Benefits

• Avoid dividend risk
• Avoid differences between dividend predictions and actual dividend declarations
• Make prices on Single Stock Futures without having to make dividend predictions

Who should use this product?

• Investors in Single Stock Futures who wish to avoid dividend risk
• Risk averse investors seeking exposure to movement of the underlying stock without exposure to differences between dividend predictions and declarations
• Market makers who whish to avoid having to make dividend predictions/assumptions