Richard Ng, CFA
Senior Manager, Equity and Multi-Assets Index Research and Design
Jiawen Xie
Research Analyst, Equity and Multi-Assets Index Research and Design
Kathleen Dobyns
Senior Manager, Equity Index Product Management
Key takeaways:
- Market interest in dividend growth stocks has grown as these companies offer a unique combination of steady income, long-term capital appreciation and resilience during market volatility
- The FTSE Global Dividend Growth Index Series is designed to track the performance of large- and mid-cap companies in developed and emerging markets that have consistently maintained or increased their dividend payments over a five-year period
- The rules-based index series provides an accessible and systematic approach to implement a dividend growth-oriented index strategy
Points of differentiation:
- The FTSE Global Dividend Growth Index Series provides market participants with comprehensive coverage of five-year dividend leaders in terms of consistent or growing dividend payments within global equity markets
- The index construction methodology combines market cap-weighting with company-level capping, resulting in a more diversified and balanced index
- The FTSE Global Dividend Growth Index Series is built using a transparent, rules-based methodology, designed to serve as a foundation for investable products and as valuable tools for research and performance measurement
What does our research mean for investors?
By reading this paper, market participants will understand the potential benefits of using a benchmark designed to include companies that have maintained or increased their dividend payments over five years and the design and construction methodology of the FTSE Global Dividend Growth Index Series.
