Amid 2019’s volatile market environment characterized by escalated trade disputes and fears of economic recession, many market participants started the year worrying about rising rates—only to see them decline. In turbulent times, a focus on quality stocks with high dividend yields may present a compelling investment solution for market participants seeking stable income.
The S&P 500 Quality High Dividend Index seeks to provide just such a solution—it selects stocks that rank within the top 200 of the S&P 500 by quality score and dividend yield (see Exhibit 1). This order-indifferent approach ensures extensive and balanced exposure to both quality and dividend yield. Constituents are equally weighted and rebalanced semiannually.