A Bloomberg Professional Services Offering Content & Data Solutions & Data Content

Bloomberg dividend forecasts An enterprise solution for equity option traders. Reference DataReference

The need for dividend data Coverage Equity option traders and market makers need reliable, real-time Bloomberg provides global coverage for nearly 90% of data on dividends if they are to accurately price their options. companies that pay regular dividends with a market cap Dividends are a critical component of option prices, affecting the of at least $250 million, provided equity options are available call and put prices as the underlying stock’s price typically drops for the company. by the amount of any cash dividend on the ex-dividend date. Security coverage is dependent on a combination Despite their need for dividend amount, relevant dates and other of the following factors: key factors, option traders have traditionally had the challenge • Options trading of scant access to accurate dividend estimate data. • Index membership • Fundamentals/company guidance Bloomberg’s enterprise solution • Market capitalization Bloomberg Dividend Forecast (BDVD) provides up to four • Street analyst coverage years of dividend forecasts, as well as historical dividend data on covered equities. It also delivers dividend forecast data for Strong methodology equity indices and ETFs. To assist this process, forecasts are created by an experienced And now the information available to Bloomberg Terminal® global dividend analyst team to provide accurate forecasts subscribers is available in an enterprise solution, off-Terminal, for both dividend dates and amounts for up to four years. with the same benefits: Through bottom-up analysis that takes into consideration key publicly available information, including guidance, financials Accuracy and pricing data, our independent and dedicated analysts leverage the full power of the Bloomberg Terminal to develop BDVD has been consistently more accurate than street analysts in best-in-class forecasts. forecasting dividend amounts. For example, in the third quarter of 2017, BDVD forecasts were accurate 73% of the time, compared to 44% by the analyst consensus estimate compiled by Bloomberg.

Regression analysis Dividend health score Industry & peer analysis Financial analysis — FA BDVD Relative valuation — RV

Put-call parity Bloomberg Company guidance Option monitor — FA dividend forecast Company news — CN BT

Trend analysis Street analyst estimates Dividend History — DVD Market consensus — EEB BDVD — Value proposition Data content Learn more Timeliness Current dividend data To learn more about the Data License Bulk Bloomberg analysts leverage the power of • Frequency, type and amount File email [email protected] for individual security forecasting email Bloomberg news and data to ensure any new • Dates (declared, ex-date, record [email protected]. relevant data point is factored into estimates. and pay date) The types of data leveraged include: • Three year dividend growth • 12 month dividend yield • Macroeconomic data • Industry trends Estimated dividend data • Company specific news • Frequency, type and amount • Corporate actions • Dates (declared, ex-date and pay date) • M&A activity • Projected three year dividend growth • Projected 12 month dividend yield • Projected index dividend points

Feature Benefit Advantage Expansive coverage: Complete solution that covers equity securities Rely on one single source for your dividend forecast data. • Over 8,000 companies with active options. • 1,300 ETFs • Thousands of equity indices

Robust methodology based on 7 factors: Bloomberg produces dividend estimates that Price options more effectively with better dividend 1. Company guidance are significantly more accurate than street estimate data. Accurate option price is key for both analysts and often superior to those option market makers and players using options 2. Dividend health score of competing products. for hedging strategies. 3. Industry analysis 4. Historical trend analysis 5. Market analysts’ consensus estimates 6. Options market implied dividends 7. Historical regression analysis of fundamentals compared to dividends

Four years of forecast data Allows models to work beyond next Extend the scope of your models and feed them year’s estimates. with BDVD data.

Multiple data points: Better modelling through multiple data points. Feed more data to your equity option pricing models. • Dividend amount Better models deliver more accurate pricing and hedging strategies. • Declared date • Ex-date • Pay date • Trend • Three-year growth rate • Dividend health score

Reported dividend data in equities Historical data for dividends Access historical dividend data for analysis.

Take the next step. Beijing Hong Kong New York Singapore +86 10 6649 7500 +852 2977 6000 +1 212 318 2000 +65 6212 1000 For additional information, Dubai London San Francisco Sydney press the key twice +971 4 364 1000 +44 20 7330 7500 +1 415 912 2960 +61 2 9777 8600 on the Bloomberg Terminal®. Frankfurt Mumbai São Paulo Tokyo +49 69 9204 1210 +91 22 6120 3600 +55 11 2395 9000 +81 3 3201 8900 bloomberg.com/professional

BDVD does not express an opinion on the future value of a security and does not provide recommendations to “buy”, “sell”, “hold” or enter into any transaction or other strategy. No aspect of the BDVD forecasts or data is based on a customer’s individual circumstances. BDVD should not be considered as information sufficient upon which to base an investment decision. BDVD is offered where the necessary legal clearances have been obtained. Employees involved in BDVD may hold positions in securities included in the BDVD Services. The data included in these materials are for illustrative purposes only. ©2018 Bloomberg 208520 DIG 0618