Dividend Forecasting

nayakchandan · January 14th, 2010, 7:47 am

Hi,I was wondering if there is an implied feedback loop here..the option trader quoting for an index like snp would be taking markit or blooberg or his own research estimates... if its the first two then the implied dividend yields would just be an already available number.Any thoughts on this?Chandan

nayakchandan · April 7th, 2011, 1:18 pm

I guess it all boils down to financial statement analysis (div paying capacity from cash flows and reserves) and comparing it to what the div swap market is pricing. Some companies do like to maintain dividends, no matter how painful it may be given their current financial conditions (Telstra of australia)