The S-Network Durable Dividend Indexes are designed to serve as fair, impartial and transparent measures of the performance of large cap equities with above average dividend yields. There are currently three indexes in the S-Network Durable Dividend Index family:
The S-Network Durable Dividend Indexes embody certain key characteristics that distinguish them from other indexes that attempt to provide exposure to stocks with high dividend yields, including the following:
The S-Network US Large/Mid-Cap 1000 Index (SN1000) and Large-Cap REITs serve as the universe for SNDDX. The S-Network US Mid-Cap 500 Index (SNM500) and Mid-Cap REITs serve as the universe for SNDDMX. The S-Network Developed International (ex-US) 1000 Index (SND1000) and Developed Large-Cap REITs serve as the universe for SNDDIX.
The S-Network Durable Dividend Indexes weight all stocks equally, and are constituted to approximate the sector weights in the benchmarks that define their universes. This methodology avoids momentum bias and domination by mega-cap stocks, while maintaining high correlation to the relevant benchmarks.
Constituents of the Durable Dividend Indexes are selected not only based on their high dividend yields, but also based on within-sector rankings of cash flow, EBITDA, and current debt-to-equity ratio. These additional screens help to ensure the future durability of the constituents' dividends.
The S-Network Durable Dividend Indexes depend on a clearly defined rules-based methodology, which are overseen by an impartial Index Committee. No discretion is exercised in compiling the indexes and a pre-defined screening protocol assures a consistent, transparent and arms-length compilation process.