Dividend Bets Trailing Europe Stocks Highlight Draghi Skepticism
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Has the stock rally spurred by Mario Draghi’s quantitative easing gone too far? Based on financial contracts betting on future dividend rates, the answer is yes.
While the Euro Stoxx 50 Index has climbed 17 percent since the start of the year, expectations for dividend growth have risen about one-third as fast, according to futures. Contracts allowing traders to speculate on dividend levels in the benchmark gauge trade on the Eurex exchange.