The eight new indexes, which will complement the Dow Jones US Select Dividend Index, will cover the following countries: France, Germany, Italy, the Netherlands, Spain, Sweden, Switzerland and the United Kingdom. The indexes will be launched at the end of the first quarter of 2005.
”The concept of the Dow Jones US Select Dividend Index has proven popular and extremely successful. Dividends have made a resurgence as an important ingredient in an investor’s choice when choosing equities,” said John Prestbo, editor, Dow Jones Indexes. “As a result, we have seen extraordinary demand for this type of index from market participants outside the United States. Now, for the first time, investors will be able to track high-dividend-yielding companies for some of Europe’s most important markets. We also expect a lot of interest from institutions seeking to license these indexes as the basis of financial products.“
The Dow Jones US Select Dividend Index was launched in November 2003 in response to increased interest by U.S. investors in companies issuing dividends partly because of the introduction of lower U.S. tax rates on this income stream. The index, weighted by dividend yield, measures the performance of 100 stocks selected according to yield, a track record of maintaining or increasing dividends over the prior five-year period and the capability of sustaining or increasing payout going forward.
Assets tied to the Dow Jones US Select Dividend Index exceeded $6 billion as of Jan. 31, 2005.
