Traders Bet Fiat Chrysler Starts Paying Dividend Early Next Year

Options traders are betting Fiat Chrysler Automobiles NV will start paying a dividend by February in what would be the first payout since the Italian-American automaker was formed in 2014.

Traders are pricing in an annual dividend of 19 cents to be paid in February 2019, according to data compiled by Bloomberg, with the payment to be announced in January. The automaker said last week that it will sellits components unit Magneti Marelli for 6.2 billion euros ($7.14 billion). That’s going to generate cash that the company could use to fulfill a pledge to start paying dividends as part ...