The Dow Jones SWX Select Dividend 20 Index further complements the widely successful Dow Jones and Dow Jones STOXX Select Dividend index family.
“Growing interest in the unique concept of our select dividend indexes, in which components are weighted according to dividend yield instead of market capitalization, initiated the cooperation with SWX Swiss Exchange to launch the second European country index as part of the Dow Jones Select Dividend Index family,” said Lars Hamich, managing director of STOXX Ltd., the joint venture of Deutsche Börse, Dow Jones and SWX Swiss Exchange, which is responsible for Dow Jones Indexes’ business development in Europe, Asia and the Middle East. “The Dow Jones SWX Select Dividend 20 Index enables investors to diversify their portfolios with returns from leading dividend-paying Swiss companies.”
Werner Bürki, a member of SWX’s Management Board, said: “We are thrilled to launch and develop yet another benchmark product together with our partners from Dow Jones.”
The Dow Jones SWX Select Dividend 20 Index has outperformed Swiss market indexes since its inception. As of Jan. 31, 2006, the Dow Jones SWX Select Dividend 20 Index—calculated in Swiss francs—was up 53.54%, the Dow Jones Switzerland Titans 30 Index rose 21.68% and the Swiss Market Index (SMI) Index increased 22.54%.
To be eligible for inclusion in the Dow Jones SWX Select Dividend 20 Index, a component must have a positive, historical, five-year dividend-per-share growth rate and a dividend-to-earnings-per-share ratio of less than or equal to 60% in the current year, or be a previous component.
Each company’s weight in the Dow Jones SWX Select Dividend 20 Index is based on its indicated annual dividend yield. The indicated annual dividend yields for all components are totaled, and each component’s weight is equal to its dividend yield contribution. The weight of individual components in the index is restricted to 15%; such restrictions are implemented quarterly.
The Dow Jones SWX Select Dividend Index will be reviewed on an annual basis in March. Price and total return indexes are calculated in U.S. dollars and Swiss francs. Historical data are available daily back to Dec. 31, 1998, with a base value set at 100. Components and weightings are available at www.djindexes.com.