At a time of unprecedented growth in prices and more money flowing into the index than ever, I decided to look into how the premium priced players size up in terms of dividend yield so far this season. Even when compared to the start of this year, the peak of the market is up over £1.70 thanks to Neymar and many others have followed suit, and with such high dividend pay outs since the doubling of Match Day Dividends in November it’s not surprising to see people eager to capitalise on these opportunities, but it does beg the question, are some of these players really worth it? Are some yielding better than their price suggests? I did some digging to find out…
Looking at the top of the market it’s obvious why people are still desperate to get their hands on some Neymar futures, even if it is at a 99% premium compared to his price in August (£4.89). The Brazilian has yielded £1.49 since the start of the season and shows no signs of slowing down, with the Real Madrid rumours and Champions League keeping his media capabilities alive and an average Match Day score this season on 178, he’s more than capable of picking up a dividend in that area too, proven by his 57p yield which is the highest yield in the top 25. (Just look at his price movements today….)
Moving down the rankings, Messi’s modest yield of £1.15 is nothing to complain about, although a few lower than expected scores have seen him only produce one double day star player dividend since the dividends were doubled, however a big win in the near future could definitely see him close the gap on Neymar.
Speaking of closing the gap, our very own Harry Kane continues to defy the “he doesn’t win dividends” stereotype that was attached to him in the early periods of the Index by picking up more dividends this season than both those above him, which has seen him bring the gap between him and Messi down to just six pence at the time of writing, and with a strong possibility of progressing with Spurs in the Champions League after an impressive comeback in Turin, and internationals coming up, there’s a real possibility he leap frogs the Argentine, even if it is only for a short period of time.
Sanchez and Coutinho boast very impressive media stats however those returns can’t be expected to continue at such a rate after both were the centre of their own transfer saga. That being said, the new United man definitely has the chance to continue picking up wins in an attempt to emulate Ibrahimovic’s dominance as United’s star man, something which Lukaku clearly hasn’t had the presence to do.
It’s clear there’s a correlation between players yield and their price, which intuitively there should be, with the top of the pack clearly capable of producing in both areas of the dividends but there are a few players up there that seem to be doing very little to keep their value, Mbappe, Jesus and Rashford are yet to produce anything notable to validate such a high price, although of course they are all young talents and we clearly have some patient investors on the platform, similar could be said about Griezmann and Bale, who hang on to a top spot through transfer expectation.
Of those outside the top25, some player’s yields are quite extraordinary for their price, Daniel Parejo continues to impress as the only player to pick up three 18p dividends to date and is the highest yielder Match Day Dividend player as a result with a total yield of 62p. Dani Alves, although slated for his age continues to show “it’s just a number” by yielding the highest defender dividend so far with 55p. Rooney and Perisic sit high on the best of the rest list but quite falsely it has to be said, have both not picked up anything over the last three months and not really showing any signs of that changing.
Overall, it’s clear that media dividends are concentrated between a select few and although they’re much smaller than Match Day dividends, the sheer frequencies for the repeated winners make it easy to accumulate a good return, so if you have the fund available and want a more certain chance of return, the peak of the market is the place to be, and its more than likely you’ll get Match Day dividends thrown in as a sweetener every now and then. But, if you’re funds are limited, it’s also apparent that some players made a modest return outside the top of the market, mainly through Match Day Dividends, which is less guaranteed but can be very rewarding. Of course, this is all past data and isn’t always representative of what’s going to happen in the future but I think It gives a great context of how the market has structured its self and we will continue to see the same trends in the future, possibly with new players breaking into these categories. As ever though, it shows just how rewarding the index can be!
Written by @FootballIndexLM