Focuses on quality companies with high yield
With stock and bond yields at historic lows in many developed countries, identifying sustainable income is becoming increasingly important. Unfortunately, high dividend stocks can often come from low-quality companies unable to sustain their dividends. The FTSE RAFI Equity Income Index series screens for high-dividend-paying companies with strong growth prospects, low probabilities of distress, and conservative accounting practices—quality firms most likely to sustain and even grow their dividends.
Seeks company and sector diversification
Quality, high-dividend-paying companies are selected and weighted using fundamental measures of company size, ensuring that the FTSE RAFI Equity Income Index is economically representative and does not take significant bets on individual sectors or countries.
Builds on the RAFI Fundamental Index
The FTSE RAFI Equity Income Index series retains all the benefits of the Fundamental Index strategy: potential for outperformance, ease of implementation, low cost, and broad diversification.
Disclaimer: By providing or not providing through our website the names of or links to organizations that may offer investors access to our strategies, Research Affiliates in no way markets, offers, recommends, endorses or prefers any providers or any of their related investment products and disclaims any responsibility for other’s uses of any such providers or products. The existence of an entity’s name or hyperlink on this site does not mean that such entities are the only entities through which an investor can access Research Affiliates’ strategies since Research Affiliates may have other relationships with additional entities not listed on this website.
You are now leaving the Research Affiliates, LLC website. The following link may contain information concerning investments, products or other information. Research Affiliates, LLC is not responsible for the accuracy or completeness of information on non-affiliated websites. The material available on non-affiliated websites has been produced by entities that are not affiliated with Research Affiliates, LLC. Descriptions of, references to, or links to products or publications within any non-affiliated linked website does not imply endorsement of that product or publication by Research Affiliates, LLC. Any opinions or recommendations from non-affiliated websites are solely those of the independent providers and are not the opinions or recommendations of Research Affiliates, LLC, which is not responsible for any inaccuracies or errors. THIS INFORMATION IS NOT AN OFFER TO BUY OR A SOLICITATION TO SELL ANY SECURITY OR INVESTMENT PRODUCT. SUCH AN OFFER OR SOLICITATION IS MADE ONLY BY THE SECURITIES' OR INVESTMENT PRODUCTS' ISSUER OR SPONSOR THROUGH A PROSPECTUS OR OTHER OFFERING DOCUMENTATION.