Skandia prepares income generator based on dividends
Skandia will launch tomorrow the Skandia Enhanced Dividend Seeker, a new protected product which delivers an annual income that depends on the dividend payments of the FTSE100 companies, rather than their share price valuations.
The three-year product is open for investment until June 26 2009, with income payments made on each of the three anniversaries with the return for the first year fixed at 6% of the capital invested. At the end of years two and three, payments will be determined by the value of dividends issued each year by the companies.
When a constituent company issues a dividend, its value is calculated as a proportion of the value of the FTSE100 as a whole - and expressed as a unit called 'dividend points'
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