Tag Archives: free cash flow
High Dividend Yield Meets Quality: Introducing the S&P 500 Quality FCF High Dividend Index
The recently launched S&P 500® Quality FCF High Dividend Index measures high-dividend stocks supported by strong free cash flow (FCF), offering an approach that blends income generation and financial resilience. Companies that consistently generate excess cash may be better equipped to sustain and grow dividends, even during periods of market stress. This focus on income…
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S&P 500 Quality FCF R&D Leaders Index: Highlighting Innovation, Growth and Fundamental Strength
Research and development (R&D) investment is often a key indicator of innovation, competitiveness and a forward-looking mindset—qualities that may drive future revenue streams and market leadership. Comparing R&D Intensity1 across companies can help identify those that are dedicating significant resources to developing new products, technologies or services capable of disrupting industries and generating lasting value….
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One Year On: The Rise of the S&P Quality FCF Aristocrats Indices
Launched Sept. 23, 2024, the S&P Quality FCF Aristocrats® Indices track companies that consistently generate robust free cash flow (FCF) over a specific number of years. FCF, which represents the cash remaining after a business meets its operational costs and capital investments, serves as a key barometer of company quality. The S&P Quality FCF Aristocrats…
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Free Cash Flow as a Proxy for Quality in Europe: Introducing the S&P Europe Quality FCF Aristocrats Index
The S&P Europe Quality FCF Aristocrats® Index introduces the quality free cash flow (FCF) methodology to the European region. The index methodology selects high quality companies in the S&P Europe LargeMidCap universe that emphasize consistent and efficient free cash flow (FCF) generation.1 Our recent education paper explores the use of FCF metrics in creating indices…
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Expanding the S&P Quality FCF Aristocrats Indices to U.S. Mid and Small Caps
Utilizing free cash flow (FCF) to evaluate a company’s quality can be a powerful way to identify financially resilient businesses. Unlike earnings, which can be influenced by accounting practices, FCF provides a clearer picture of a company’s ability to generate cash after covering essential expenses and investments. In our paper published this year, we demonstrated…
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A New Approach to S&P Aristocrats: Meet the S&P Quality FCF Aristocrats Indices
How does at least 10 consecutive years of free cash flow growth influence risk/return? Look inside the S&P Quality FCF Aristocrats Indices and see how a focus on consistent and efficient free cash flow generation has historically led to improved fundamentals, defensive characteristics and outperformance relative to the benchmark.
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Analyzing the Historical Performance of the S&P Quality FCF Aristocrats Indices across Macroeconomic Environments
S&P DJI recently launched a new family of indices known as the S&P Quality FCF Aristocrats which includes the S&P 500® Quality FCF Aristocrats® Index and the S&P Developed Quality FCF Aristocrats Index. A more comprehensive introduction to this family of indices can be found in this blog post. Gaining insights into the historical performance…
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Comparing the S&P Quality FCF Aristocrats Indices with the S&P Dividend Aristocrats
While the S&P Dividend Aristocrats® Indices have been in existence for almost two decades, only now has the “Aristocrats” moniker been extended to a new series: the S&P Quality FCF Aristocrats® (Free Cash Flow Aristocrats) Indices. Like the S&P Dividend Aristocrats, this new series emphasizes consistency and the selection of high quality companies. While they…
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aristocrats, defensive strategies, Dividend Aristocrats, dividends, institutional investor, quality, Quality FCF Aristocrats, S&P 500 Quality FCF Aristocrats Index, S&P Developed Quality FCF Aristocrats Index, S&P High Yield Dividend Aristocrats Index, S&P HYDA Index, S&P Quality FCF Aristocrats Indices
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- aristocrats, defensive strategies, Dividend Aristocrats, dividends, institutional investor, quality, Quality FCF Aristocrats, S&P 500 Quality FCF Aristocrats Index, S&P Developed Quality FCF Aristocrats Index, S&P High Yield Dividend Aristocrats Index, S&P HYDA Index, S&P Quality FCF Aristocrats Indices
Introducing the S&P Quality FCF Aristocrats Indices
The S&P Quality FCF Aristocrats® (Free Cash Flow Aristocrats) Indices measure companies that consistently generate robust FCF over many years. FCF, the cash remaining after a business covers its operational costs and capital investments, is crucial because it provides financial flexibility. Companies with high FCF can invest in growth opportunities, pay dividends and reduce debt,…
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Examining Cash Flow in Small-Cap U.S. Equities
How does screening the S&P 600 for the top 100 companies based on free cash flow yield influence performance? S&P DJI’s Michael Mell takes a custom look at the Pacer US Small Cap Cash Cows Index with Sean O’Hara, President of Pacer ETFs and Cameron Dawson, Chief Investment Officer at NewEdge Wealth.
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