Tag Archives: dividend indices
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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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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Why Did Dividend Indices Underperform during the Coronavirus Sell-Off?
Over the past 20 years, the S&P 500® experienced three bear markets with drawdowns greater than 30%—the 2000-2001 Tech Bust, the 2008 Global Financial Crisis (GFC), and the ongoing coronavirus sell-off. During both the Tech Bust and the GFC, various U.S.-focused dividend indices outperformed the S&P 500. However, during the coronavirus sell-off, most dividend indices…
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Impact of Dividend Announcements on S&P DJI Dividend Indices
Dividend-paying companies have been in the spotlight as a direct consequence of the ongoing COVID-19 pandemic and crude oil glut crisis. A combination of strained corporate cash flows and political intervention has seen many companies cancel, cut or postpone payments globally. In this blog, we examine the potential impact of these events on the S&P…
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The Tale of Dividends in India, Continued
Much has been written about dividends in academic literature. There are several theories regarding the dividend policies of companies. One theory asserts that dividends are irrelevant because an investor who wants cash flows could sell shares. Another theory suggests that a bird in the hand is worth two in the bush, meaning that investors prefer…
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Are Dividends the Answer to Growth for Income Hunters?
Dividend focused strategies as well as strategies offering exposure to alternative income sources have become popular and proliferated over the past few years given the low interest rate environment. Throughout history, dividends constitute an important part of total equity return. In decades such as the 40s and the 70s, dividends constitute 50% or more of…