Skip to main content

      More Results
        More Results

        From Sectors and Smart Beta to Fixed Income, SPDR Exchange Traded Funds (ETFs) give you wide access to diverse investment opportunities. Find out more.

        Okay

        Insights

        Insights

        Global Dividend Aristocrats Target Stocks with a Long-Term Track Record

        • Market sentiment continues to favour an economic recovery in 2021, as vaccination programs help support a pickup in business activity.
        • Companies are keen to renew their commitments on returning capital to shareholders through the dividend.
        • A stable dividend strategy, such as the Global Dividend Aristocrats index tracked by SPDR® ETFs, aims to offer investors strong yield factor exposure through higher quality stocks from a diverse range of sectors.

        Current Economic Landscape Favours Return to Dividend Strategies

        The current economic sentiment provides a supportive case for dividend stocks based on recent earnings guidance, analyst projections and general optimism toward a continued economic recovery. This environment could present an opportunity for global equity investors using UCITS ETFs to return to dividend strategies, following momentum seen in other recovery plays. Global equity investors heard a number of positive themes this earnings season, which helped shape the future estimates on forward dividends.

        The S&P® Global Dividend Aristocrats Quality Income Index (“Global Dividend Aristocrats”) selects high yielding stocks that have a long-term track record (at least 10 consecutive years) of maintaining or raising the total dividend per share amount every year. By adding Global Dividend Aristocrats to the portfolio, investors can increase exposure to stocks forecasting increasing or stable dividend yields, both in terms of nominal stock count (Figure 1) and overall portfolio exposure (Figure 2).

         

        Figure 1: Total Number of Stocks by Forecast Action

        figure1

        Source: Bloomberg Finance L.P., as of 19 April 2021. The above targets are estimates based on certain assumptions and analysis made by Bloomberg Finance L.P.. There is no guarantee that the estimates will be achieved.

         

        Figure 2: Total Portfolio Exposure by Forecast Action

        figure2

        Source: Bloomberg Finance L.P., as of 19 April 2021.The above targets are estimates based on certain assumptions and analysis made by Bloomberg Finance L.P.. There is no guarantee that the estimates will be achieved.

         

        The Global Dividend Aristocrats index uses a flexible approach to targeting quality income, which allows the strategy to go ‘wherever it needs’ to find long-term stable dividends. As a result, the index will often tilt toward sectors such as Financials, Utilities, Consumer Staples and Real Estate. Each of these sectors presents opportunities for investors to target stocks that are both increasing and maintaining short-term dividend yields (Figure 3).

         

        Figure 3: Total Portfolio Exposure by Forecast Action and Sector

        Share

        MARKETING COMMUNICATION

                                           

        FOR PROFESSIONAL INVESTORS USE ONLY.

         

        SSGA SPDR ETFS MAY NOT BE AVAILABLE OR SUITABLE FOR ALL. SPDR ETFs may be offered and sold only in those jurisdictions where authorised, in compliance with applicable regulations.

         

        Investing involves risk including the risk of loss of principal.

         

        ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.

         

        The S&P 500® Index is a product of S&P Dow Jones Indices LLC or its affiliates (“S&P DJI”) and have been licensed for use by State Street Global Advisors.  S&P®, SPDR®, S&P 500®,US 500 and the 500 are trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and has been licensed for use by S&P Dow Jones Indices; and these trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by State Street Global Advisors. The fund is not sponsored, endorsed, sold or promoted by S&P DJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of these indices.

         

        The information provided does not constitute investment advice as such term is defined under the Markets in Financial Instruments Directive (2014/65/EU) or applicable Swiss regulation and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell any investment. It does not take into account any investor's or potential investor’s particular investment objectives, strategies, tax status, risk appetite or investment horizon. If you require investment advice you should consult your tax and financial or other professional advisor.

         

        The information contained in this communication is not a research recommendation or ‘investment research’ and is classified as a ‘Marketing Communication’ in accordance with the Markets in Financial Instruments Directive (2014/65/EU) or applicable Swiss regulation. This means that this marketing communication (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research (b) is not subject to any prohibition on dealing ahead of the dissemination of investment research.

         

        All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed.  There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

         

        This content has been issued by State Street Global Advisors Europe Limited is regulated by the Central Bank of Ireland. Registered office address 78 Sir John Rogerson’s Quay, Dublin 2. Registered Number: 49934. T: +353 (0)1 776 3000. F: +353 (0)1 776 3300.

         

        FOR EUROPEAN SPDR ETFs and MANAGED FUNDS:

         

        Please refer to the Fund’s latest Key Information Document (KID) and Prospectus before making any final investment decision. The latest English version of the prospectus and the KID can be found at www.ssga.com/ch/en_gb/institutional/ic/fund-finder. A summary of investor rights can be found here:

         

        Managed Funds: https://www.ssga.com/library-content/products/fund-docs/summary-of-investor-rights/ssga-investors-rights-summary-non-etf-ireland.pdf

         

        SPDR ETFs: https://www.ssga.com/library-content/products/fund-docs/summary-of-investor-rights/ssga-spdr-investors-rights-summary.pdf

         

        Note that the Management Company may decide to terminate the arrangements made for marketing and proceed with de-notification in compliance with Article 93a of Directive 2009/65/EC.

         

        SPDR ETFs is the exchange traded funds ("ETF") platform of State Street Global Advisors and is comprised of funds that have been authorised by Central Bank of Ireland as open-ended UCITS investment companies.

         

        SSGA SPDR ETFs Europe I & SPDR ETFs Europe II plc issue SPDR ETFs, and is an open-ended investment company with variable capital having segregated liability between its sub-funds. The Company is organized as an Undertaking for Collective Investments in Transferable Securities (UCITS) under the laws of Ireland and authorized as a UCITS by the Central Bank of Ireland.

         

        FOR STRATEGIES:

         

        This document provides summary information regarding the Strategy. This document should be read in conjunction with the Strategy's Disclosure Document, which is available from SSGA. The Strategy Disclosure Document contains important information about the Strategy, including a description of a number of risks.

         

        The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.

        4978691.4.1.EMEA.INST

        Exp: 30.06.2025 

        © [[]] %%State Street Corporation%%. All rights reserved.