This week’s Barron’s on page 15 has the following statement. “This month the swaps market is implying that dividends for the S&P 500 companies would fall to $20.28 per share in 2009 from $28.39 paid in 2008.” I have two questions. 1) How do you calculate the implied S&P dividend from swaps market? 2) Is there a place where I can go and check what today’s implied dividend number is? Tx
umm the prooly talking about equity swaps and they assume the return on the market is dividend yield + some stochastic growth, (average return over 30 years)? who knows? Let me call up JDV and ask him… hold on…
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