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Sustainable Dividends for Sustainable Investors

For sustainable investors with equity income objectives, identifying dividend-paying companies can be challenging, as many economic sectors that tend to be dividend rich are also areas of heightened ESG risk. But with careful research, it is possible to uncover well-positioned dividend payers from across the entire economy that are effectively managing ESG risk factors. The Morningstar Sustainability Dividend Yield Focus Indexes aim to deliver income, competitive risk- adjusted returns, and low ESG risk by drawing on Morningstar’s most powerful research and ratings systems.

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What’s Inside

  • An overview of Morningstar’s selective, forward-looking approach to identifying companies well-positioned to sustain their dividends.
  • A look into company-level ESG risk assessments from Sustainalytics and how they assess exposure to and management of ESG-related risks that are financially material.
  • A comparison of yields, returns, and ESG risk exposure across dividend index strategies with and without sustainability screens.

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