Tag Archives: dividends

Oct 19, 2020

Active U.K. Income Funds Endure Challenging Times

The U.K. has been one of the worst-hit countries in developed markets in terms of dividend cuts in 2020. One in two dividend-paying companies in the S&P United Kingdom BMI have cut dividends, while half of the remaining companies are also expected to cut dividends.1 A tough year indeed for equity income managers, as opportunity…

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Sep 2, 2020

Changes to the S&P/ASX 300 Shareholder Yield Index Explained

The S&P/ASX 300 Shareholder Yield Index consists of the 40 stocks from the S&P/ASX 300 with the highest shareholder yield, which is a combination of dividend yield and buyback yield. In order to achieve sustainable performance, the eligible stocks are screened for liquidity, free cash flow, and dividend growth. After consultations with market participants, S&P…

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Aug 11, 2020

Why the S&P 500 Reduces Portfolio Volatility for Indian Investors

Home bias has been a prominent theme in India since the beginning of the mutual fund industry. Investors historically questioned why they should diversify their high GDP growth portfolio (India) with lower growth economies such as the US. This hypothesis has been tested over the last decade. India has delivered a high GDP growth but…

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Aug 6, 2020

What’s inside the S&P DJI Australian Factor Indices?

In our paper, How Smart Beta Strategies Work in the Australian Market, our studies indicated that most factor indices in Australia exhibited distinct return characteristics during up and down markets. Indeed, different factor indices also displayed unique style and industry factor exposures, resulting in factor index performance differentials over the long term. In this blog,…

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Jul 21, 2020

The Beat Goes on for the S&P 500 Dividend Aristocrats

The S&P 500® Dividend Aristocrats® is an index comprising companies in the S&P 500 that have increased their annual cash payments for at least 25 years in a row. Dividends are a part of their culture and public appeal (income), as they broadly highlight their increases. In general, their increases are smaller but still constant,…

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Jul 16, 2020

What Is in Store for S&P 500® Dividends? Only Time and the Pace of Recovery Will Tell

In the first half of 2020, the total amount of dividends paid out by S&P 500 companies rose 5.1% on a year-over-year basis (see A YTD History of S&P 500® Dividend Increases, Cuts, and Suspensions). However, the forward declarations for Q3 2020 show a decline. With 84% declared for July 2020, the month is poised…

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Jul 13, 2020

A YTD History of S&P 500® Dividend Increases, Cuts, and Suspensions

Back in mid-February 2020, S&P 500 issues were easily on track to set their ninth annual record for dividend cash payments, as forecasts called for double-digit 2020 returns. By month-end February, 113 issues in the S&P 500, 22% of the index, had increased their dividends, with no cuts (and certainly no suspensions), and Q1 2020…

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Jul 9, 2020

Demystifying the June 2020 Annual Dividend Rebalance

During the months of March to May this year, dividend concerns came to the fore as many companies, globally, announced cuts, cancellations, and postponements to their respective dividend programs. We examined the impact of these public announcements on the S&P DJI Dividend Indices, and our assessment then revealed that the extent to which indices were…

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Jun 9, 2020

Dividend Indices in Unprecedented Times – A Latin American Perspective

It’s time to look at dividend indices through the lens of these “unprecedented times.” Many market participants seek the comfort of dividend strategies, precisely for the yield they can generate. However, dividend investing is under siege, since many companies have announced reduced dividends or have suspended them altogether given the impact of the COVID-19 pandemic…

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Jun 2, 2020

The Continued Ups and Downs of Dividends

On May 20, 2020, my colleagues and I sought to address some questions about dividends and the viability of tried and true approaches to dividend income. During that session, Craig Lazzara, Ari Rajendra, and Howard Silverblatt of S&P Dow Jones Indices (S&P DJI) joined me to address: The current state of dividends across the globe,…

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