S&P Dow Jones Indices has launched sustainable versions of its Dividend Aristocrats suite of indices.
S&P Developed ESG Dividend Aristocrats Index, the S&P ESG High Yield Dividend Aristocrats Index, the S&P Global ESG Dividend Aristocrats Index, the S&P Global ESG Dividend Aristocrats Quality Income Index and the S&P Euro ESG High Yield Dividend Aristocrats Index.
The S&P ESG Dividend Aristocrats Indices applies S&P Global's ESG scores to establish the investible universe. The indices apply additional screens and exclude companies that are involved in specific business activities, including those that are not aligned with the principles of United Nations' Global Compact, and those that are involved in ESG controversies.
"S&P Dow Jones Indices is proud to offer ESG versions of many of our most well-known and respected benchmarks such as our Dividend Aristocrats and flagship U.S. equities index family," says Reid Steadman, global head of ESG Indices at S&P Dow Jones Indices.
"The S&P ESG Dividend Aristocrats Indices include a layer of sustainability screens, reflecting the market's growing recognition of the financial materiality and impact of ESG issues on corporate balance sheets."
Each of the S&P ESG Dividend Aristocrats indices measures the dividend yield-weighted performance of companies from its underlying parent index that meet specific ESG criteria and have followed a managed-dividends policy for a specified number of years.
"Dividend payments are often viewed as an important barometer of companies' financial health and outlooks," says Aye Soe, global head of product management at S&P Dow Jones Indices.
"Market participants closely monitor companies' long-term dividend payment track records as indicators of corporate maturity and balance sheet strength. Investors also often utilize dividend-based strategies to help manage risks and returns especially in bearish and volatile market conditions."