The Dow Jones Spain Select Dividend Index complements the widely successful Dow Jones U.S. Select Dividend Index, the European Dow Jones STOXX and Dow Jones Euro STOXX Select Dividend 30 Indexes as well as the Dow Jones Canada and Dow Jones EPAC Select Dividend Indexes.
”We have seen strong interest in our existing select dividend indexes for the U.S., the eurozone and Europe, especially by Spanish investors. We also have seen particular interest in the unique index concept, in which components are weighted according to dividend yield instead of market capitalization; this makes the index attractive for investors,” said Lars Hamich, managing director of STOXX Ltd., the joint venture that is responsible for Dow Jones Indexes’ business development in Europe, Asia and the Middle East. “The Dow Jones Spain Select Dividend Index allows investors to diversify their portfolios with returns from leading dividend-paying companies in the Spanish market.”
In 2005, the Dow Jones Spain Select Dividend Index outperformed the Spanish market indexes. As of Dec.30, 2005, the Dow Jones Spain Select Dividend Index - calculated in euros - was up 38.37%, the Dow Jones Spain Titans 30 Index rose 22.18% and the IBEX 35 Index increased 18.20%.
To be eligible for inclusion in the Dow Jones Spain Select Dividend 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 80% in the current year or be a previous component.
Each company’s weight in the Dow Jones Spain 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 contribution. The weight of individual components in the index is restricted to 15%; such restrictions are implemented quarterly.
The Dow Jones Spain Select Dividend Index will be reviewed on an annual basis in March. Price and total return indexes are calculated in U.S. dollars and euros. 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.
