The Dow Jones Stoxx Global Select Dividend 100 Index has been licensed to iShares to serve as the basis for an exchange-traded fund available on Deutsche Boerse.
Launched on 21 February 2007, the Dow Jones Stoxx Global Select Dividend 100 Index comprises the 100 highest dividend-yielding stocks worldwide. It consists of 40 stocks from the Americas, as well as of 30 stocks each from Europe and Asia Pacific.
As of 8 October 2009, the index was up 28.59 per cent for the year.
To be eligible for inclusion in the index, a company 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 per cent in Europe and the Americas and 80 per cent in Asia/Pacific in the current year, or be a previous component.
“The Dow Jones Stoxx Global Select Dividend 100 Index follows a unique methodology where the component weightings are based on dividend yield rather than the traditional market capitalization weighting. This offers a uniquely structured tool that allows market participants to access the performance of high-dividend paying global companies,” says Ricardo Manrique, chief executive officer, Stoxx. “iShares’ decision to launch an ETF on this index complements its existing ETF lineup based on other Dow Jones and Dow Jones Stoxx Select Dividend Indexes, which provide exposure to single countries and specific regions.”
The weight of individual components in the index is restricted to 15 per cent in order to prevent the index from being dominated by single high-dividend paying stocks. The index is reviewed on an annual basis in March.
