S&p Global Inc. · NYSE:SPGI
S&p Global — Conference Presentation (April 2023)
38 slides from S&p Global's conference presentation, Apr 5, 2023
Slide 1: Dividend Strategies using Indices
Dividend Strategies using Indices Jason Ye, CFA Director, Strategy Indices April 5th, 2023 S&P Dow Jones Indices – For Financial Professionals Only
Slide 2: Why Dividend?
Why Dividend? S&P Dow Jones Indices – For Financial Professionals Only 2
Slide 3: Why Dividend? Important Source of Equity Total Return
Why Dividend? Important Source of Equity Total Return US (S&P 500) % from Dividend and Dividend Reinvestment 25.00% 200% 20.00% 160% 15.00% 35% 120% Return 10.00% 80% 5.00% 40% 0.00% 0% -5.00% -40% Dividend and Dividend Reinvestment Price % from Dividend and Dividend Reinvestment (RHS) *no % from di
Slide 4: Why Dividend? Important Source of Equity Total Return
Why Dividend? Important Source of Equity Total Return US (S&P 500) Japan (S&P Japan 500) % from Dividend and Dividend Reinvestment 25.00% 200% 10.00% 100% % from Dividend and Dividend Reinvestment 8.00% 20.00% 160% 44% 6.00% 50% 15.00% 35% 120% 4.00% Return Return 2.00% 10.00% 80% 0% 0.00% 5.00% 40%
Slide 5: Why Dividend? Alternative Source of Income
Why Dividend? Alternative Source of Income Yield 5 4 3 2 1 0 -1 S&P Japan Government Bond Index S&P Japan 500 S&P/JPX Dividend Aristocrats Index Source: S&P Dow Jones Indices LLC. Data as of February 28, 2023. Brazil, S&P/B3 Low Volatility High Dividend Index; Hong Kong, S&P Access Hong Kong Low Vol
Slide 6: Why Dividend? Alternative Source of Income
Why Dividend? Alternative Source of Income Yield Trailing 12-month Dividend Yield of 5 High Yield Strategies in Individual Markets 12.00 10.75 4 10.00 3 7.79 7.62 8.00 6.95 6.93 2 Yield (%) 5.80 6.00 5.33 5.07 4.52 1 4.00 0 2.00 -1 - S&P Japan Government Bond Index S&P Japan 500 S&P/JPX Dividend Ari
Slide 7: Historical Outperformance against the Market
Why Dividend? Historical Outperformance against the Market Rolling 5-Year Excess Return S&P 500 Dividend Aristocrats - S&P 500 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% Dec-94 Dec-16 Dec-18 Dec-20 Dec-22 Dec-96 Dec-98 Dec-00 Dec-02 Dec-04 Dec-06 Dec-08 Dec-10 Dec-12 Dec-14 Dividend Grower S&P
Slide 8: Historical Outperformance against the Market
Why Dividend? Historical Outperformance against the Market Rolling 5-Year Excess Return Rolling 5-Year Excess Return S&P 500 Dividend Aristocrats - S&P 500 High Yield Portfolio - Market in U.S. 20.0% 16.00% 15.0% 10.0% 5.0% 6.00% 0.0% -5.0% -4.00% -10.0% -15.0% -14.00% Dec-94 Dec-16 Dec-18 Dec-20 De
Slide 9: Dividend Strategies
Dividend Strategies S&P Dow Jones Indices – For Financial Professionals Only 9
Slide 10: Dividend ETF Market
Dividend ETF Market Over 50% of Dividend ETF Assets tracking S&P Dow Jones Dividend Indices As of December 31, 2022, $209.5 billion in combined ETF assets were tracking S&P Dow Jones dividend indices, comprising leading ETF names in the US, Canada, International and Emerging markets. Global Dividend
Slide 11: Dividend ETF Market
Dividend ETF Market Over 50% of Dividend ETF Assets tracking S&P Dow Jones Dividend Indices As of December 31, 2022, $209.5 billion in combined ETF assets were tracking S&P Dow Jones dividend indices, comprising leading ETF names in the US, Canada, International and Emerging markets. Global Dividend
Slide 12: ETF Flows
ETF Flows Annual Flows of Dividend ETFs tracking S&P Dow Jones Dividend Indices 40,000.0 37,272.4 35,000.0 30,000.0 Net Flows in Millions USD 25,000.0 22,292.1 20,000.0 15,000.0 13,245.4 10,000.0 7,289.7 5,000.0 2,975.5 1,609.3 - 2018 2019 2020 2021 2022 2023YTD Source: Morningstar Direct. Data as o
Slide 13: S&P Dividend Index Families
S&P Dividend Index Families Not All Dividend Strategies are Created Equal While the Aristocrats family relies on a very stringent quality screen of consistent dividend growth over time – a trademark of the methodology – the Select and Opportunities families incorporate stability and fundamental crit
Slide 14: S&P Dividend Index Families
S&P Dividend Index Families Not All Dividend Strategies are Created Equal While the Aristocrats family relies on a very stringent quality screen of consistent dividend growth over time – a trademark of the methodology – the Select and Opportunities families incorporate stability and fundamental crit
Slide 15: S&P Dividend Aristocrats
S&P 500 Dividend Aristocrats S&P 500 Dividend Aristocrats Index measure the performance of companies that have increased dividends for at least 25 number of years within S&P 500 Methodology Snapshot Universe S&P 500 Size FMC >= US$ 3 billion Liquidity 5M ADVT >= US$ 5 million Constituents must follo
Slide 16: S&P Dividend Aristocrats
S&P 500 Dividend Aristocrats S&P 500 Dividend Aristocrats Index measure the performance of companies that have increased dividends for at least 25 number of years within S&P 500 Methodology Snapshot A Long History of Dividend Growth As of Feb 28, 2023 Number of Stocks Universe S&P 500 8 Size FMC >=
Slide 17: S&P Dividend Aristocrats
S&P 500 Dividend Aristocrats S&P 500 Dividend Aristocrats Index measure the performance of companies that have increased dividends for at least 25 number of years within S&P 500 Methodology Snapshot A Long History of Dividend Growth As of Feb 28, 2023 Number of Stocks Universe S&P 500 8 Size FMC >=
Slide 18: S&P Dividend Aristocrats
S&P 500 Dividend Aristocrats S&P 500 Dividend Aristocrats Index measure the performance of companies that have increased dividends for at least 25 number of years within S&P 500 Methodology Snapshot A Long History of Dividend Growth As of Feb 28, 2023 Number of Stocks Universe S&P 500 8 Size FMC >=
Slide 19: S&P Quality High Dividend
S&P 500 Quality High Dividend The S&P 500 Quality High Dividend Index seeks to track quality stocks with high dividend yields - it selects stocks that rank within the top 200 of the S&P 500 by quality score and dividend yield Methodology Snapshot Universe S&P 500 Stocks that meet both criteria are s
Slide 20: S&P Quality High Dividend
S&P 500 Quality High Dividend The S&P 500 Quality High Dividend Index seeks to track quality stocks with high dividend yields - it selects stocks that rank within the top 200 of the S&P 500 by quality score and dividend yield Methodology Snapshot Dividend Yield and Performance Universe S&P 500 6.00
Slide 21: S&P Quality High Dividend
S&P 500 Quality High Dividend The S&P 500 Quality High Dividend Index seeks to track quality stocks with high dividend yields - it selects stocks that rank within the top 200 of the S&P 500 by quality score and dividend yield Methodology Snapshot Dividend Yield and Performance Universe S&P 500 6.00
Slide 22: S&P Quality High Dividend
S&P 500 Quality High Dividend The S&P 500 Quality High Dividend Index seeks to track quality stocks with high dividend yields - it selects stocks that rank within the top 200 of the S&P 500 by quality score and dividend yield Methodology Snapshot Dividend Yield and Performance Universe S&P 500 6.00
Slide 23: Dow Jones U.S. Dividend 100
Dow Jones U.S. Dividend 100 The Dow Jones U.S. Dividend 100 seeks to track high dividend yield stocks with strong fundamentals Methodology Snapshot Dow Jones U.S. Broad Market Index, excluding Universe REITs. • Dividend: minimum 10 consecutive years of dividend payments Eligibility • Size: minimum f
Slide 24: Dow Jones U.S. Dividend 100
Dow Jones U.S. Dividend 100 The Dow Jones U.S. Dividend 100 seeks to track high dividend yield stocks with strong fundamentals Methodology Snapshot Dividend Yield and Performance Dow Jones U.S. Broad Market Index, excluding 10 Universe 8 REITs. Yield (%) 6 • Dividend: minimum 10 consecutive years of
Slide 25: Dow Jones U.S. Dividend 100
Dow Jones U.S. Dividend 100 The Dow Jones U.S. Dividend 100 seeks to track high dividend yield stocks with strong fundamentals Methodology Snapshot Dividend Yield and Performance Dow Jones U.S. Broad Market Index, excluding 10 Universe 8 REITs. Yield (%) 6 • Dividend: minimum 10 consecutive years of
Slide 26: Dividend Strategies for Japan Market
Dividend Strategies for Japan Market S&P Dow Jones Indices – For Financial Professionals Only 26
Slide 27: Japan: A Continuously Growing Dividend Pool with Resilience
Japan: A Continuously Growing Dividend Pool with Resilience Dividend Pool, Earnings, and Payout Ratio 60,000 50.0% 45.0% 50,000 40.0% 35.0% 40,000 30.0% 30,000 25.0% 20.0% 20,000 15.0% 10.0% 10,000 5.0% - 0.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Size of dividend pool (bn) Earnings
Slide 28: Japan: A Continuously Growing Dividend Pool with Resilience
Japan: A Continuously Growing Dividend Pool with Resilience Dividend Pool, Earnings, and Payout Ratio Year-Over-Year Dividend Change 60,000 50.0% 1,200 45.0% 50,000 1,000 40.0% 35.0% 40,000 800 30.0% 30,000 25.0% 600 20.0% 20,000 400 15.0% 10.0% 10,000 200 5.0% - 0.0% - 2012 2013 2014 2015 2016 2017
Slide 29: Japan High Yield Strategy
Japan High Yield Strategy High Dividend Yield Strategy Outperformed the Market Annualized Compounded Returns 20.00% 15.00% 10.00% 5.00% 0.00% -5.00% -10.00% -15.00% Full 1 Year 3 Year 5 Year 7 Year 10 Year 15 Year Period High Yield Quintile 2 Medium Yield Quintile 4 Low Yield Non-Payers Japan 500 So
Slide 30: Japan High Yield Strategy
Japan High Yield Strategy High Dividend Yield Strategy Outperformed the Market Annualized Compounded Returns Annualized Standard Deviation 20.00% 30.00% 15.00% 25.00% 10.00% 20.00% 5.00% 15.00% 0.00% 10.00% -5.00% 5.00% -10.00% -15.00% 0.00% Full 1 Year 3 Year 5 Year 7 Year 10 Year 15 Year Full 1 Ye
Slide 31: Japan Dividend Growth Strategy
Japan Dividend Growth Strategy S&P/JPX Dividend Aristocrats Methodology Snapshot Universe TOPIX Size Float-adjusted Market Cap >= JPY 50 billion Liquidity 3-month ADVT >= JPY 300 million • Dividend growth: constituents must have increased dividends or maintained Dividend stable dividends every year
Slide 32: Japan Dividend Growth Strategy
Japan Dividend Growth Strategy S&P/JPX Dividend Aristocrats Methodology Snapshot A Long History of Dividend Growth Universe TOPIX 20 As of June 30, 2022 15 Size Float-adjusted Market Cap >= JPY 50 billion 15 Liquidity 3-month ADVT >= JPY 300 million 10 # of stocks • Dividend growth: constituents mus
Slide 33: Japan Dividend Growth Strategy
Japan Dividend Growth Strategy S&P/JPX Dividend Aristocrats Methodology Snapshot A Long History of Dividend Growth Universe TOPIX 20 As of June 30, 2022 15 Size Float-adjusted Market Cap >= JPY 50 billion 15 Liquidity 3-month ADVT >= JPY 300 million 10 # of stocks • Dividend growth: constituents mus
Slide 34: Japan Dividend Growth Strategy
Japan Dividend Growth Strategy S&P/JPX Dividend Aristocrats Methodology Snapshot A Long History of Dividend Growth Universe TOPIX 20 As of June 30, 2022 15 Size Float-adjusted Market Cap >= JPY 50 billion 15 Liquidity 3-month ADVT >= JPY 300 million 10 # of stocks • Dividend growth: constituents mus
Slide 35: New Dividend Ideas
New Dividend Ideas • Extension of existing framework – Sector Neutral – Variations of Weighting Schemes • ESG + Dividend – Screening • New Dataset – IHS Markit Dividend Forecasting S&P Dow Jones Indices – For Financial Professionals Only 35
Slide 36: For more information
For more information https://www.spglobal.com/spdji/en/landing/investment-themes/dividends/ SPDJI-GrowthStrategy@spglobal.com S&P Dow Jones Indices – For Financial Professionals Only
Slide 37: General Disclaimer
General Disclaimer © 2023 S&P Dow Jones Indices. All rights reserved. S&P, S&P 500, SPX, SPY, The 500, US500 , US 30, S&P 100, S&P COMPOSITE 1500, S&P 400, S&P MIDCA P 400, S&P 600, S&P SMALLCAP 600, S&P GIVI, GLOBAL TITANS, DIVIDEND ARISTOCRA TS, Select Sector, S&P MAESTRO, S&P PRISM, S&P STRIDE, G
Slide 38: Performance Disclosure/Back-Tested Data
Performance Disclosure/Back-Tested Data The S&P 500 Dividend Aristocrats Index w as launched on May 2, 2005. The S&P High Yield Dividend Aristocrats Index w as launched on November 9, 2005. The S&P 500 High Dividend Index w as launched on September 21, 2015. All information presented prior to an ind