Over time, dividends can make up a high proportion of equity market returns. Takeover offers can also account for a high share of equity market performance in any year.
Some predictive analysis is relatively straightforward. Once dividends are announced, it is very rare for companies to cut or cancel them, absent extreme events such as the Covid crisis, a natural catastrophe or fraud.
Other corporate events are more difficult to predict. The majority of takeover and merger offers are completed, but the timing can be uncertain if there are multiple regulatory approvals, and a minority of deals do break for various reasons: sometimes the acquirer reneges on the offer, sometimes the target shareholders reject it, and various regulators, including competition authorities and foreign investment bodies, can veto mergers.
Risk management should consider the costs and risks of missing deadlines, incorrectly interpreting a corporate action or applying the wrong rates of withholding taxes.
These risks are reputational as well as financial. The brand name damage of making a mistake could be much greater than the financial cost of compensating investors for the error.