The Latest Addition to the S&P Global Dividend Aristocrats Index Series
TORONTO, Oct. 16 /CNW/ - Standard & Poor's, the world's leading index
provider, announced today the launch of the S&P/TSX Canadian Dividend
Aristocrats Index which is designed to measure the performance of those
Canadian companies that have consistently increased dividends annually for at
least seven years.
"Dividends have contributed nearly a third of the market's total equity
return of the S&P/TSX Composite since 1956, while capital appreciation has
contributed two thirds," said Jasmit Bhandal, director of business development
at Standard & Poor's Canadian Index Services. "Stable and increasing dividends
are traditionally used by corporate managers to signal their confidence in
their company's prospects. Investors consider long dividend track records a
sign of corporate maturity, growth, and strength."
The S&P/TSX Canadian Dividend Aristocrats is designed for investors
looking for yield. Constituents have more sustainable payout ratios and have
shown better return on equity, and higher earnings and dividend growth than
the Canadian market overall. It also has consistently delivered yields in the
3.1% to 4.2% range over the past five years.
The S&P/TSX Canadian Dividend Aristocrats Index is weighted by indicated
yield. It incorporates concentration limits to prevent any stock from being
more than 8% of the Index weight at each quarterly rebalancing. The index
constituents are re-weighted every quarter, and the Dividend Aristocrats
universe reviewed every December.
A research paper detailing the methodology, historical returns, and
constituents of the S&P/TSX Canadian Dividend Aristocrats Index is available
at www.standardandpoors.com/indices under Alternative Indices.
About Standard & Poor's Dividend Aristocrats Indices
The S&P/TSX Canadian Dividend Aristocrats Index is the latest addition to
the S&P Dividend Aristocrats index series. The other indices in this series
include the S&P 500 Dividend Aristocrats, the S&P Europe 350 Dividend
Aristocrats, and the S&P High Yield Dividend Aristocrats.
About Standard & Poor's
Standard & Poor's, a division of The McGraw-Hill Companies (NYSE: MHP), is
the world's foremost provider of financial market intelligence, including
independent credit ratings, indices, risk evaluation, investment research and
data. With approximately 8,500 employees, including wholly owned affiliates,
located in 21 countries. Standard & Poor's is an essential part of the world's
financial infrastructure and has played a leading role for more than 140 years
in providing investors with the independent benchmarks they need to feel more
confident about their investment and financial decisions. For more
information, visit www.standardandpoors.com.
For further information:
For further information: Rachel Shain, Standard & Poor's, (416)
507-2528, email@example.com; Jasmit Bhandal, Standard &
Poor's, (416) 507-3203, firstname.lastname@example.org