Since its index inception on March 31, 2005, the Dow Jones International Dividend 100 Index has delivered significant outperformance, on a total return basis, over the broader market, as represented by the Dow Jones Global ex-U.S. Index. The Dow Jones International Dividend 100 Index generated an annualized return of 8.82%, compared with 6.05% from the…
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Dividend strategies appeal to investors for various reasons. High-dividend-yield strategies can offer generous income, while dividend growth strategies tend to emphasize the quality of dividends. The Dow Jones International Dividend 100 Index, launched in March 2021, seeks to provide global exposure to both high dividend yield and dividend growth. Here we review the methodology of…
A CRITICAL DISTINCTION TO BE MADE When the pandemic began, many investors feared widespread dividend cuts. However, while some companies did cut or suspended their dividends, the damage was largely confined to the pandemic’s early stages. Once the economy began to stabilize, so did dividends. By the end of 2020, approximately three times as many…
Decrement indices have gained popularity as the underlying assets of equity-linked structured products in Europe and Asia. According to SRP, among the 318 products across asset classes in France that matured or autocalled between April 2018 and March 2019, more than 32 were linked to decrement indices.1 One of the reasons behind this recent popularity…
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…
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…
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…
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,…
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,…
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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