Dividend Viewpoint

Perspectives on dividend investing in today's markets

  • Apr 27, 2020
    COVID-19, Dividends
    and Legislative Risk
  • May 21, 2020
    How Quality Affects
    Dividend Outcomes
  • Jun 30, 2020
    Dividend Resilience
    for Today’s Markets

The Importance of Dividends and the Impact of the Pandemic

Article Summary: The pandemic-driven shutdown of much of the global economy—and the uncertain path to recovery—are weighing on nearly every aspect of the investment landscape. What will happen to dividends? It’s a fair question that involves a paradox.

If we are in for a period of muted equity returns—an environment where at least some companies' dividends may be at risk—dividends may have increased importance.

The Quality-Based Differences Developing in Dividends

Article Summary: Dividends have always been a major contributor to total S&P 500 returns, and they have even been responsible for the majority of stock returns in difficult times (e.g., during the 1970s). Quality metrics provide an important lens for examining dividend risk in challenging environments, including the current crisis. Dividend cuts have begun, and we see an interesting split developing.

Only one-fifth as many dividend cutters and eliminators have come from the top quintile of the S&P 500 by credit rating. Nearly five times that number have come from the bottom quintile.

The Dividend Growth Advantage: Resilience for Today's Markets

Article Summary: So far, just one company among the S&P 500® Dividend Aristocrats®—an index consisting of companies that have increased their dividends for at least 25 consecutive years—has cut its dividend. What is the likely source of their resiliency, both current and historical? Quality.

The Dividend Aristocrats have a high distribution of companies at the top of credit ratings. Higher-quality has been closely associated with dividend resiliency during previous market disruptions, and it may support similar resiliency in today’s pandemic-driven market.

ProShares Offers the Largest Lineup of Dividend Growth ETFs

Strategies focused on companies with the longest records of consistent dividend growth can help investors build durable portfolios that may perform well in both strong and turbulent markets. And ProShares offers more dividend growth ETFs than any other company.

ProShares ETF Ticker Index Market Segment
S&P 500 Dividend Aristocrats ETF NOBL S&P 500® Dividend Aristocrats® Index Large Cap
S&P MidCap 400 Dividend Aristocrats ETF REGL S&P MidCap 400® Dividend Aristocrats Index Mid Cap
Russell 2000 Dividend Growers ETF SMDV Russell 2000® Dividend Growth Index Small Cap
Russell U.S. Dividend Growers ETF TMDV Russell 3000® Dividend Elite Index U.S. Total Market
S&P Technology Dividend Aristocrats ETF TDV S&P® Technology Dividend Aristocrats® Index Technology
MSCI EAFE Dividend Growers ETF EFAD MSCI EAFE Dividend Masters Index Developed International
MSCI Europe Dividend Growers ETF EUDV MSCI Europe Dividend Masters Index Developed International
MSCI Emerging Markets Dividend Growers ETF EMDV MSCI Emerging Markets Dividend Masters Index Emerging Markets

Learn More

Visit the Dividend Growers section of ProShares.com for more complete information about the nation's largest lineup of ETFs focused on dividend growth.

This is not intended to be investment advice. Any forward-looking statements herein are based on expectations of ProShare Advisors LLC at this time. ProShare Advisors LLC undertakes no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investing is currently subject to additional risks and uncertainties related to COVID-19, including general economic, market and business conditions; changes in laws or regulations or other actions made by governmental authorities or regulatory bodies; and world economic and political developments.

Investing involves risk, including the possible loss of principal. There is no guarantee any ProShares ETF will achieve its investment objective.

Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing.

The "S&P 500® Dividend Aristocrats® Index," "S&P MidCap 400® Dividend Aristocrats Index" and "S&P® Technology Dividend Aristocrats Index®" are products of S&P Dow Jones Indices LLC and its affiliates. "Russell 2000® Dividend Growth Index," "Russell 3000® Dividend Elite Index" and "Russell®" are trademarks of Russell Investment Group. "MSCI," "MSCI Inc.," "MSCI Index" and "EAFE" are service marks of MSCI. All have been licensed for use by ProShares. "S&P®" is a registered trademark of Standard & Poor's Financial Services LLC ("S&P") and "Dow Jones®" is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones") and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates. ProShares have not been passed on by these entities and their affiliates as to their legality or suitability. ProShares based on these indexes are not sponsored, endorsed, sold or promoted by these entities and their affiliates, and they make no representation regarding the advisability of investing in ProShares. THESE ENTITIES AND THEIR AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES.

ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds' advisor or sponsor.

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This report is intended for general information and should not be used to solicit prospective investors. For more complete information please review the prospectus.

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