.jpg)
Dow Jones Indexes today announced its four new Dow Jones Forecasted Dividend Plus Indexes have been licensed by UniCredit to serve as the basis for Tracker Certificates, to be issued in Germany and Austria. Marketed under the brand names “HypoVereinsbank onemarkets” in Germany and “UniCredit onemarkets” in Austria, the certificates will be listed on the Frankfurt and Stuttgart Stock Exchanges.
The launch of the Dow Jones Forecasted Dividend Plus Indexes marks the latest dividend-index family addition for Dow Jones Indexes; the global index provider has been a leader in dividend-indexing since the 2003 launch of its Dow Jones U.S. Select Dividend Index.
The Dow Jones Forecasted Dividend Plus Indexes are designed to measure the performance of stocks with the highest expected dividend yields and that have historically demonstrated sustainable dividend programmes. The indexes launched today include a regional index with 40 components and three country indexes with 20 components:
• Dow Jones Europe Forecasted Dividend Plus Index;
• Dow Jones Germany Forecasted Dividend Plus Index;
• Dow Jones France Forecasted Dividend Plus Index; and
• Dow Jones U.K. Forecasted Dividend Plus Index.
“The indexes launched today are the latest example of Dow Jones Indexes’ ability to build on our experience as pioneers in the dividend-indexing space by producing innovative gauges that respond to evolving market demand,” said Michael A. Petronella, President, Dow Jones Indexes. “The Dow Jones Forecasted Dividend Plus Indexes series captures the markets’ expectation for expected high-dividend-yielding stocks while considering the companies’ ability to sustain their dividend programme.”
Here is a list of the indexes and their year-to-date back-tested performances as of 30 March, 2012 (price return, in Euros): Dow Jones Europe Forecasted Dividend Plus Index (2.52%), Dow Jones Germany Forecasted Dividend Plus Index (20.62%), Dow Jones France Forecasted Dividend Plus Index (6.27%) and Dow Jones U.K. Forecasted Dividend Plus Index (5.01%).
Back-tested historical data for the new gauges has been calculated daily back to December 31, 2006, the date at which the indexes’ base value is set at 1,000. All estimated daily historical closing prices prior to today’s date are based on back-testing (i.e., calculations of how the index might have performed in the past if it had existed). Back-tested performance information is purely hypothetical and is solely for informational purposes. Back-tested performance does not represent actual performance, and should not be interpreted as an indication of actual performance. Past performance is not indicative of future results.
Stocks in the index universe are subject to the following screens to determine their eligibility for the Dow Jones Forecasted Dividend Plus Indexes:
• Minimum three-month average daily trading volume of USD10 million for the regional index / USD 5 million for the country indexes;
• Non-negative 12-month earnings per share;
• Dividend yield greater than zero for the past three years; and
• Forecasted dividend yield greater than zero.
All stocks on the selection list are ranked by each of the following equal-weighted criteria: forecasted dividend yield, ratio of forecasted dividend to three-year average dividend and three-month percent increase in stock price. The top 20 stocks for the country indexes and the top 40 stocks for the Europe index are selected for the index, subject to buffers that aim to limit turnover by favoring current components.
The indexes are weighted based on forecasted dividend yield. The forecasted dividend-yield values used to calculate the weighting factors are capped at 20%. The weights of individual companies within the index are restricted to 15% for the regional index / 10% for the country indexes. The indexes are reviewed semi-annually, in June and December.
This launch follows last month’s launch by Dow Jones Indexes of six Select Dividend Distributing Indexes also licensed to UniCredit, and further underscores Dow Jones Indexes' recent commitment to expanding its European suite of market measures.
