Tag Archives: S&P 500 Dividend Aristocrats
Dividends Have Stabilized After a Challenging 2020: What Comes Next?
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…
- Categories Strategy
- Other Tags
- Categories
- Strategy
- Other Tags
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,…
- Categories Equities
- Other Tags
- Categories
- Equities
- Other Tags
Durability During Distress – Part 2
Dividends play a vital role in many investors’ approach to the market, although there is more than one way to approach dividends. Some investors are most concerned with dividend yield per se, while others are more sensitive to the growth of dividends over time. Both approaches, of course, can be readily indicized. Within the U.S….
- Categories Strategy
- Other Tags
- Categories
- Strategy
- Other Tags
Putting Defensive Indices to the Test
In January 2019, we highlighted several indices designed to reduce the impact of large equity market drawdowns. Here we analyze the same suite of indices divided across three broad categories: defensive equity, multi-asset, and volatility. This analysis simply reviews performance since the S&P 500®’s high on Feb. 19, 2020, through the close on Friday, March…
- Other Tags
Multi-Asset Income Strategies in a Low Interest Rate Environment
One of the most significant characteristics of the post-financial crisis world has been the global persistence of low, or even negative, interest rates. The entire U.S. Treasury curve yielded below 1% for the first time in history on March 9, 2020, in the wake of the COVID-19 pandemic, before the long end reverted recently on…
- Categories Strategy
- Other Tags
Profiling the “Personality” of 2 Dividend Strategies – A Factor Look
How do the personalities of two dividend index portfolios look when reviewed under the “Factor Lens”? Using the Optimal Asset Management’s Factor Allocator tool, let’s review two strategies – S&P 500 Dividend Aristocrats and the S&P 500 High Dividend Index. We can identify the average factor exposures of each strategy since January 1995 by viewing…
- Other Tags
The Case for Information Technology Dividend Growers
One of the common misconceptions in finance is that companies from the Information Technology (Tech) sector do not pay dividends. While this may have been the trend a long time ago, this has certainly not been the trend over the past 10 years. Over the past 10 years, within the Tech sector of the S&P…
- Categories Strategy
- Other Tags
The Rising Importance of Dividends When Earnings Slow
Summary With Q3’s earnings season substantially complete, 2019 earnings for S&P 500 companies are expected to decline on a year-over-year basis. After several strong quarters last year, the first three quarters this year have seen marked earnings deceleration. Providing 1/3 of historical S&P 500 total returns, dividends could become important when the market may be…
- Categories Strategy
- Other Tags
- Categories
- Strategy
- Other Tags
Combining Dividend Aristocrats and Buybacks
Dividends and stock buybacks are two ways that a company returns capital to its shareholders. Investors can benefit from both, but is there a synergy that can result from combining them? We’ve seen a surge in both buyback value and the number of participating companies in recent years. In 2018, 444 of S&P 500® companies…
- Other Tags
S&P 500® Dividend Aristocrats®: Risk Decomposition and Sector Composition
Today we examine the impact of the members of the S&P 500 Dividend Aristocrats Class of 2019 on the index’s factor risk and sector composition. In our previous blog, we introduced these new constituents and discussed their quality ranking. Risk decomposition of the S&P 500 Dividend Aristocrats using Axioma’s US Fundamental Equity Risk Model MH4…
- Categories Equities, S&P 500 & DJIA, Strategy
- Other Tags
- Categories
- Equities, S&P 500 & DJIA, Strategy
- Other Tags