S&P Indices announced today the launches of the S&P UK High Yield Dividend Aristocrats and S&P Euro High Yield Dividend Aristocrats Indices. Both Indices have been licensed to SSgA for the creation of SPDR ETFs (Exchange Traded Funds). S&P Indices already publishes a high yield dividend aristocrat index based upon the S&P 1500.
The S&P UK High Yield Dividend Aristocrats and S&P Euro High Yield Dividend Aristocrats indices measure the performance of the highest dividend-yielding UK and Eurozone companies, respectively, within the S&P Europe Broad Market Index. Amongst other criteria, a company must have increased dividends or maintained stable dividends for at least ten consecutive years to qualify for inclusion in the indices.
Alka Banerjee, Vice President at S&P Indices, said: “Traditionally, dividends constituted only about a third of total equity returns. But the current economic climate of sluggish growth suggests that dividend-producing stocks serve an important purpose for many investors because they are usually more resilient than other asset classes in a falling market. Both of these new indices have been designed to measure high yielding dividend stocks, without compromising on sustainability and growth.”
Eleanor Hope-Bell, Head of UK and Northern Europe Sales, SSgA, explains: “With current market volatility and low interest rates, we have experienced substantial demand in our US and emerging market dividend SPDR ETFs. Our clients have asked for similar strategies in other regions. While other dividend indices tend to focus only on high dividend yields, the Dividend Aristocrats indices look beyond pure yield to sustainable and quality yield, providing access to companies that have a long track record of consistently paying dividends.”
The index methodology incorporates criteria for dividend payout ratio and maximum indicated dividend yield, thereby excluding companies whose future dividend payout may be considered less sustainable. To give preference to companies with higher dividend yields, the indices are weighted by the stock’s indicated annual dividend yield.
For the complete index methodology, please visit www.indices.standardandpoors.com.
About S&P Indices
S&P Indices, a leading brand of the McGraw-Hill Companies (NYSE:MHP), maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Over $1.45 trillion is directly indexed to our indices, which includes the S&P 500, the world’s most followed stock market index, the S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, the S&P Global BMI, an index with approximately 11,000 constituents, the S&P GSCI, the industry’s most closely watched commodities index, and the S&P National AMT-Free Municipal Bond Index, the premier investable index for U.S. municipal bonds. For more information, please visit: www.standardandpoors.com/indices.
It is not possible to invest directly in an index. S&P Indices does not sponsor, endorse, sell, or promote any S&P index-based investment product. This document does not constitute an offer of services in jurisdictions where S&P Indices or its affiliates do not have the necessary licenses. S&P Indices receives compensation in connection with licensing its indices to third parties.
SOURCE S&P Indices