ELI5: Explain Like I'm 5

Dividend future

Okay kiddo, so let's talk about dividends. When you own a share of a company's stock, you own a little piece of that company. And sometimes, when that company makes a lot of money, they decide to give some of that money back to their shareholders (that's people like you who own their stock) and that's called a dividend.

Now, a dividend future is a little bit different. It's like making a guess about what the company might pay you in dividends in the future. It's kind of like when you're playing a game, and you try to guess what might happen next. Some people who work in finance and investing use dividend futures to help them make decisions about what stocks to buy or sell.

Basically, a dividend future is a prediction about how much money a company might pay out to its shareholders in dividends sometime in the future. It's just a guess, though - nobody really knows for sure what will happen. So, people who use dividend futures have to be careful and make smart decisions based on all the information they have.