STOXX Ltd., the leading European index provider, today launched two indexes that are weighted by dividend yield instead of market capitalization. The Dow Jones STOXX Americas Select Dividend 40 Index and the Dow Jones STOXX Asia/Pacific Select Dividend 30 Index further complement the Dow Jones and Dow Jones STOXX Select Dividend index series.
The Dow Jones STOXX Americas Select Dividend 40 Index includes the 40 highest yielding stocks of Canada and the USA, using the Dow Jones STOXX Americas 600 Index as its underlying index universe. The Dow Jones STOXX Asia/Pacific Select Dividend 30 Index comprises the 30 highest yielding stocks of Australia, Hong Kong, Japan, New Zealand and Singapore, using the Dow Jones STOXX Asia/Pacific 600 Index as its underlying index universe. The indexes are designed to underlie investment products, such as exchange-traded funds, mutual funds and other investment vehicles.
"The Dow Jones STOXX Americas Select Dividend 40 Index and the Dow Jones STOXX Asia/Pacific Select Dividend 30 Index are the newest members of our unique and highly successful select dividend index family, weighted by dividend yield instead market capitalization," said Lars Hamich, managing director of STOXX Ltd. "The indexes allow investors to further diversify their portfolios with returns from leading dividend-paying companies domiciled in North America and in Asia/Pacific.”
The Dow Jones STOXX Americas Select Dividend 40 Index has an annualized performance of 10.08% since its inception on December 31, 1998. It has outperformed the Dow Jones STOXX Americas 600 Index by 117.87% since then. The Dow Jones STOXX Asia/Pacific Select Dividend 30 Index has an annualized performance of 16.97% since its inception on December 31, 1998 and has outperformed the Dow Jones STOXX Asia/Pacific 600 Index by 215.84% since then.
To be eligible for inclusion in the Dow Jones STOXX Americas Select Dividend 40 and the Dow Jones STOXX Asia/Pacific Select Dividend 30 Indexes, 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 Americas and 80% in Asia/Pacific in the current year, or be a previous component.
Each company's weight in the Dow Jones STOXX Americas Select Dividend 40 and the Dow Jones STOXX Asia/Pacific Select Dividend 30 Indexes are 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 new indexes is restricted to 15% in order to prevent the index from being dominated by a single high-dividend paying stocks. This restriction is implemented quarterly.
The Dow Jones STOXX Americas Select Dividend 40 and the Dow Jones STOXX Asia/Pacific Select Dividend 30 Indexes are reviewed on an annual basis in March. Price and total return indexes are calculated in Euro and U.S dollar. Daily historical data are available back to Dec. 31, 1998, with a base value set at 1000.
The Dow Jones and Dow Jones STOXX Select Dividend Indexes series consists of the Dow Jones STOXX Global Select Dividend 100 Index, the Dow Jones STOXX Select Dividend 30 Index, the Dow Jones EURO STOXX Select Dividend 30 Index, the Dow Jones STOXX NORDIC Select Dividend 20 Index, the Dow Jones STOXX EU Enlarged Select Dividend 15 Index, Dow Jones STOXX Americas Select Dividend 40 Index, Dow Jones STOXX Asia/Pacific Select Dividend 30 Index, the Dow Jones Select Dividend Indexes for Asia, Asia/Pacific, Australia, Canada, EPAC, France, Germany, Italy, Japan, the Netherlands, Spain, Sweden, the U.K. and the U.S. as well as the Dow Jones SWX Select Dividend 20 Index. This index series is based on the concept of the Dow Jones U.S. Select Dividend Index, which was launched in November 2003 in response to the increased interest of U.S. investors in companies issuing dividends after lower U.S. tax rates on dividends were introduced.
Components, weightings and performance figures for the Dow Jones STOXX Select Dividend Indexes can be found at www.stoxx.com.