Dividend Achievers™ is an objective composite of companies with a history of increasing dividend payouts. This select group of companies is committed to enhancing shareholder value through the return of capital to shareholders. Indxis maintains the Dividend Achievers™ indices, which may be licensed as investable products, including mutual funds, ETFs, UITs, structured products, separately managed accounts, and others.
To qualify as Dividend Achiever, a company must have increased its dividend payout each year for the last ten or more consecutive years and meet certain liquidity requirements.
Why Dividends Matter
- Companies that pay regular dividends tend to be in better financial health and produce sustained earnings and revenue growth.
- Dividends help identify well-managed companies; every dividend declaration represents a promise by management and a vote of confidence by the board of directors in the company's leadership.
- Companies that consistently raise their dividend payouts also raise the bar on their own performance expectations.
- Shares of dividend-paying companies possess built-in value that makes them generally more resilient in down markets, with solid appreciation potential during earnings-driven market upturns-with less price volatility.
Dividend Achievers™ History
The Dividend Achievers™ history traces back to 1979, when Moody's Investor Service developed a proprietary model to identify best-of-breed dividend-paying companies. Four years later, Moody's created the first Handbook of Dividend Achievers™, in recognition of these companies. In 1998, Mergent, Inc. acquired Moody's Investor Service and rebranded the handbook under the Mergent name.
Dividend Achievers™ Becomes an Index
In 2003, Mergent created an investment methodology to translate its extensive historical financial and dividend data into an authoritative investment index-The Broad Dividend Achievers™ Index. Later that year, Mergent announced its first index licensing agreement with BlackRock, Inc., and launched the BlackRock Dividend Achievers™ Trust. Today, investment products based in the Dividend Achievers methodology have in excess of $15 billion in assets under management, and are offered by major financial firms including BlackRock, Vanguard, Invesco Powershares and others.
The Handbook of Dividend Achievers™
Mergent continues to publish the Handbook of Dividend Achievers. The Handbook is a highly regarded reference book for individual investors, providing detailed profiles on each company in the Dividend Achievers™ Index, plus listings of various statistical subdivisions within the index, such as asset size, earnings growth, total return and more.
Each company profile includes:
- Stock performance charts
- Dividend records
- Business descriptions & analysis of recent developments
- 10-year average annual dividend growth rate
- Historical total returns
- Financial ratios