S&P Dow Jones Indices (“S&P DJI”), the world’s leading index provider, today announced the launch of sustainable versions of its popular and widely followed Dividend Aristocrats family of indices representing multiple geographies.
S&P DJI is introducing five new Dividend Aristocrats Indices that incorporate environmental, social and governance (ESG) criteria. The indices included in the launch are:
- S&P Developed ESG Dividend Aristocrats Index
- S&P ESG High Yield Dividend Aristocrats Index
- S&P Global ESG Dividend Aristocrats Index
- S&P Global ESG Dividend Aristocrats Quality Income Index
- S&P Euro ESG High Yield Dividend Aristocrats Index
“Dividend payments are often viewed as an important barometer of companies’ financial health and outlooks. 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,” said Aye Soe, Global Head of Product Management at S&P Dow Jones Indices.
Each S&P ESG Dividend Aristocrats Index 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.
“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. 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,” said Reid Steadman, Global Head of ESG Indices at S&P Dow Jones Indices.
To determine constituent eligibility, the S&P ESG Dividend Aristocrats Indices utilize S&P Global’s ESG scores. 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.
The methodology on the S&P Developed ESG Dividend Aristocrats Index is available at www.spdji.com.
