1) THE POWER OF
Dividend Indices
>
In markets where bond yields remain low by historical
standards, income sensitive investors find themselves
hitting a brick wall. For those seeking longer-term income
stability, rediscovering the power of equity-based dividend
strategies may break down the barrier to income stability.
2) Why Dividends Matter
Sustainable dividend income has played an important part in total equity returns. Since 1926, dividends have contributed approximately one-third
of total equity returns (as measured by the S&P 500®). Over an even longer horizon (from 1802 to 2002), 5.0% of the 7.9% annualized equity returns
generated, can be accredited to dividend income.1 In this post-financial crisis world, equity-based dividend strategies offer:
1
An
attractive
source of higher
yield when
compared to
traditional fixed
income yields
2
Upside potential
when equity
markets
experience
upward trends
3
Inflation
protection
(historically
dividend growth
has surpassed
the rate of
inflation)
4
Favorable
tax treatment
in many
geographies
Since all equity dividend strategies are not created equal, there’s more to achieving current income or stable income growth than meets the eye.
To address the need for high yield and stable payouts, we offer a suite of dividend strategy indices that serve as a barometer for meeting diversification,
income stability and tradeability requirements.
Source: (1) Dividends and Three Dwarfs, Robert D. Arnott, (Mar/Apr 2003). Financial Analysts Journal.
1
Why Select our Dividend Indices?
The Dow Jones U.S. Select Dividend Index, launched in 2003,
pioneered the category of dividend indexing. Today, we continue
to be a leader in dividend indexing, developing indices that are
suitable for a variety of investment approaches across global
markets with the addition of the S&P Dividend Opportunities
and S&P Dividend Aristocrats® families.
Our family of dividend strategy indices allows investors to stay
the course by providing a suite of benchmarks that measure
the performance of yield-based investment strategies that are
designed to address varying needs for high yield or stable payouts:
> S&P DIVIDEND OPPORTUNITIES
Optimized absolute dividend yield
> S&P DIVIDEND ARISTOCRATS
Dividend payouts that grow year-on-year
> DOW JONES SELECT DIVIDENDS
A balance between dividend growth momentum
and current yield
3) A Bird’s Eye View of Our Dividend Indices Platform
S&P Dow Jones
Dividend Indices
S&P Dividend
S&P Dividend
Opportunities
Opportunities
> Serves as a benchmark
for global income
seeking investors
> Laser sharp focus on
absolute high yield
> Each company in the
index must demonstrate
three years of positive
earnings growth and
profitability over the
past 12 months
> Coverage:
Global, International,
Europe, Pan Asia,
Emerging Markets,
China A share,
Australia, Japan
S&P Dividend
S&P Dividend
Aristocrats
Aristocrats
Dow Jones
Dow Jones
Select Dividend
Select Dividend
> Measures the
performance of dividend
paying companies
across the globe
> epresents the
R
performance of the
highest yielding securities
in a given country
> table dividend growth
S
is the main objective
> alances the trade-off
B
between near-term high
yield and dividend
sustainability
> ompanies in the index
C
must follow a managed
dividends policy of
consistently increasing
dividends annually
> Coverage:
Global, International,
U.S., Europe, Pan Asia,
Canada
> ach company in the
E
index has been selected
for its fundamental
strength relative to peers
> Coverage:
Global, International,
Asia Pacific,
Emerging Markets,
Shariah-compliant
4) Our Dividend Index Offerings
INDEX NAME
CURRENCY
BLOOMBERG
TICKER
EXCHANGE TRADED PRODUCT NAME
ETF
TICKER
S&P Dividend Opportunities
S&P Emerging Markets Dividend Opportunities Index
USD
JPY
EUR
USD
USD
AUD
USD
SGD
USD
EUR
USD
RMB
SPGTEDUP
SPGTEDJP
SPGTEDEP
SPGTGDO
SPGTDOU
SPAXDI
SPAEDOUP
SPAEDOSP
SPDOEUP
SPDOEEP
SPASDOUP
CSPSADRP
S&P 500 Dividend Aristocrats®
S&P High Yield Dividend Aristocrats
USD
USD
SPDAUDP
SPHYDA
S&P/TSX Canadian Dividend Aristocrats
S&P UK High Yield Dividend Aristocrats
S&P Euro High Yield Dividend Aristocrats
S&P Europe 350 Dividend Aristocrats
S&P Pan Asia Dividend Aristocrats Index
CAD
GBP
EUR
EUR
USD
EUR
SPTXDV
SPUKHDA
SPEUHDA
SPDAEEP
SPDGPAUP
SPDGPAEP
DJAPSD
DJEPCSD
DJEMDIV
DJGSD
DJCASD
Dow Jones U.S. Select Divided Index
USD
USD
USD
USD
CAD
USD
USD
Dow Jones U.S. Dividend 100 Index
USD
DJUSDIV
S&P Global Dividend Opportunities Index
S&P International Dividend Opportunities Index
S&P/ASX Dividend Opportunities Index
S&P Ethical Pan Asia Select Dividend Opportunities Index
S&P Europe Dividend Opportunities Index
S&P Pan Asia Dividend Opportunities Index
S&P/CITIC China A-Share Dividend Opportunities Index
SPDR S&P Emerging Markets Dividend ETF
Guggenheim S&P Global Dividend Opportunities Index ETF
SPDR S&P International Dividend ETF
iShares S&P/ASX High Dividend
CIMB S&P Ethical Asia Pacific Dividend ETF
EDIV
LVL
DWX
IHD AU
CIMBDVD
SP
S&P Dividend Aristocrats Indices
SPDR S&P Dividend ETF
SDY
iShares S&P US Dividend Growers Index Fund (CAD-Hedged)
CUD
iShares S&P/TSX Canadian Dividend Aristocrats Index Fund
CDZ
SPDR S&P UK Dividend Aristocrats ETF
SPYG GR
SPDR S&P Euro Dividend Aristocrats ETF
SPYW GR
Dow Jones Dividend Indices
Dow Jones Asia/Pacific Select Dividend 30 Index
Dow Jones EPAC Select Dividend Index
Dow Jones Emerging Markets Select Dividend Index (USD)
Dow Jones Global Select Dividend Index
Dow Jones Canada Select Dividend
DJDVP
iShares Asia / Pacific Dividend 30 Index Fund
iShares Dow Jones International Select Dividend Index Fund
iShares Dow Jones Emerging Markets Select Dividend ETF
First Trust Dow Jones Global Select Dividend Index Fund
Dow Jones Canada Select Dividend Index Fund
iShares Dow Jones Select Dividend Index Fund
iShares Dow Jones U.S. Select Dividend (DE)
Schwab U.S. Dividend Equity ETF
DVYA
IDV
SEDY
FGD
XDV
DVY
DJDVPEX
GY
SCHD
S&P Dow Jones Indices does not sponsor, promote or endorse any investment product linked to any of our indices. We have attempted to provide a complete list of all ETFs that
are currently linked to the indices mentioned in this publication. SPDJI does not recommend or suggest one product over any other product.
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