“To summarize, the analysis found that companies with higher initial ESG ratings experience greater subsequent stability of dividends and a lower likelihood of cutting or eliminating their dividends.
Low ESG ratings do not necessarily mean poor dividend growth, but companies with high ESG ratings appear to consistently deliver higher dividend growth. Finally, equity ESG indices integrating the ISS ESG Corporate Rating may potentially offer better dividend growth over time.”
[COMMENTARY]This is a case where initial higher ESG ratings appear to have some predictive value! It gives comfort to those who may some reliance on ESG ratings.
Can High ESG Ratings Help Sustain Dividend Growth? By Subodh Mishra, August 18, 2022, Harvard Law School Forum on Corporate Governance, USA.