STOXX Ltd., the leading European index provider, today launched the Dow Jones STOXX EU Enlarged Select Dividend 15 Index. The index further complements both the widely successful Dow Jones and Dow Jones STOXX Select Dividend index series as well as the Dow Jones STOXX EU Enlarged index family.
The Dow Jones STOXX EU Enlarged Select Dividend 15 Index is the first index that measures the performance of high-dividend yielding stocks in the 12 countries that joined the European Union since May 2004. It tracks the 15 highest dividend-yielding stocks in Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia and Slovenia and is designed to underlie financial products.
"The Dow Jones STOXX EU Enlarged Select Dividend 15 Index follows the unique and highly successful concept of our select dividend index series, which weights by dividend yield, not by market capitalization," said Lars Hamich, managing director of STOXX Ltd. “This index allows investors to further diversify their portfolios with returns from high-dividend paying companies domiciled in the 12 new EU member countries.”
The Dow Jones STOXX EU Enlarged Select Dividend 15 Index has an annualized performance of 34.4 % since its inception on December 31, 2002. It has outperformed the Dow Jones STOXX EU Enlarged 15 Index by 48% over a period of one year as of January 31, 2007.
To be eligible for inclusion in the Dow Jones STOXX EU Enlarged Select Dividend 15 Index, a company must have a positive, historical, three-year dividend-per-share growth rate and a dividend-to-earnings-per-share ratio of less than or equal to 100% in the current year, or be a previous component.
Each company's weight in the Dow Jones STOXX EU Enlarged Select Dividend 15 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 Dow Jones STOXX EU Enlarged Select Dividend 15 Index is restricted to 15%. This restriction is implemented quarterly.
The Dow Jones STOXX EU Enlarged Select Dividend 15 Index is reviewed on an annual basis in March. Price and total return indexes are calculated in Euro and U.S. dollar.
The Dow Jones and Dow Jones STOXX Select Dividend Indexes series consists of the Dow Jones U.S. Select Dividend 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, the Dow Jones Select Dividend Indexes for Australia, Canada, France, Germany, Italy, Japan, the Netherlands, Spain, Sweden and the U.K., the Dow Jones SWX Select Dividend 20 Index, the Dow Jones Asia/Pacific Select Dividend 30 Index, the Dow Jones Asia Select Dividend 30 Index and the Dow Jones EPAC Select Dividend Index. This index series is based on the concept of the Dow Jones U.S. Select Dividend Index, which was launched in November 2003 as the first dividend index to respond to the increased interest of U.S. investors in companies issuing dividends after lower U.S. tax rates on dividends were introduced.
The Dow Jones STOXX EU Enlarged index family comprises the Dow Jones STOXX EU Enlarged 15 Index and the Dow Jones EU Enlarged Total Market Index, both launched in September 2004.
Components, weightings and performance figures for the Dow Jones STOXX Select Dividend Indexes and the Dow Jones STOXX EU Enlarged Indexes can be found at www.stoxx.com.
