Dividend Indices

Dividend indices are stock market indices that track companies with a history of paying dividends. These indices include only companies that regularly distribute dividends to their shareholders and are often used by income-focused investors to identify potential investments that offer consistent dividend payouts. Dividend indices can also serve as benchmarks for funds or portfolios focused on dividend-yielding stocks. Investors use dividend indices to track the performance of high-dividend-paying stocks, which can provide steady income and potentially outperform in lower-risk environments.

Example

The Dow Jones U.S. Select Dividend Index tracks top U.S. companies that have a strong history of paying dividends.