In Search of Sustainable Equity Income: A Forward-Looking Approach to Dividend Indexing

The Morningstar® Dividend Yield Focus IndexSM family takes a forward-looking approach to dividend investing. This paper updates and expands a 2012 study into the efficacy of the metrics used by the index family. Read how the data demonstrates that the moat and Distance to Default screens predict dividend sustainability.

In this paper, you will learn:
  • Why dividend-paying companies outperform
  • The problems with hunting for dividends
  • How Morningstar's metrics predict dividend cuts