Sunday, June 07, 2009

S&P Initiates Pan Asia Dividend Aristocrats

About a month and a half ago, S&P announced the introduction of a Pan Asia Dividend Aristocrats Index. A couple of key factors that will be evaluated in constructing the index:
  • The S&P Pan Asia Dividend Aristocrats Index is designed to measure the performance of Asia Pacific companies that have followed a managed dividend policy of consistently increasing dividends every year for at least 7 consecutive years. The index is weighted by dividend yield with caps on single stock concentration.
  • The Aristocrats index had a higher return and lower volatility compared to the S&P Pan Asia BMI over the past 7 years of back-tested history.
  • Index yields have been in the range of 2.8% to 5.1%, about 100 to 150 basis points above the market yield.
  • The S&P Pan Asia Dividend Aristocrats Class of 2009 includes 31 companies across 8 sectors and 7 countries. They have both growth and income characteristics.
The dividend contribution to total return of approximately 30 for the Pan Asia Aristocrats is not too different from the S&P 500 Aristocrats.

dividend income percent total return pan Asia aristocrats index 2009From a sector concentration perspective, consumer discretionary stocks represent 27% of the Pan Asia Aristocrats Index.

pan Asia Aristocrats sector weighting 2009The 31 companies that will initially comprise the Pan Asia Aristocrats universe are:


Introducing the S&P Pan Asia Dividend Aristocrats (PDF)
Standard & Poor's
By: Liyu Zeng, CFA and Dave Guarino
April 2009

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