The Morningstar® Dividend Index family offers a suite of products tracking dividend-paying equities. The Morningstar Dividend Index family is reinforced by one of the world’s largest independent equity research groups as well as our team of award-winning quantitative analysts. The art of our research-inspired approach has resulted in intelligent dividend indexes that focus on company sustainability, use smarter weighting schemas, and maximize investment scalability.
Inspired by award-winning equity research Morningstar’s equity analysts conduct business and financial analysis to assess how likely it is that a business will be able to pay and increase dividends over time. Using their analysis and proprietary metrics as a foundation—such as the Morningstar® Economic Moat Rating, Uncertainty Rating, and Distance-to-Default—we create dividend indexes that can also reflect the quality of the dividend.
Searching for sustainability The breadth of our Dividend Index family allows investors to strike the right balance between current yield and dividend growth, emphasizing long-term cash returns. One example of our dividend indexes is the Morningstar® Dividend Yield Focus Index, which offers exposure to high-quality U.S. companies with strong financial health and an ability to sustain above-average dividend payouts. We apply screens using our proprietary metrics to find companies that our analysts believe can sustain these payouts because of their competitive advantages and financial security.