STOXX Launches First Global Select Dividend Index
STOXX has launched the Dow Jones STOXX Global Select Dividend 100 Index, which is designed to further complement the Dow Jones and Dow Jones STOXX Select Dividend index series. The Dow Jones STOXX Global Select Dividend 100 Index is the first global index that measures the performance of high-dividend yielding stocks worldwide. It tracks the 40 highest dividend-yielding stocks in the Americas as well as the 30 highest dividend-yielding stocks in Europe and in Asia/Pacific, respectively. The index is designed to underlie financial products and has already been licenced to serve as an underlying for an ETF, which is scheduled to be launched in Q2 2007. The Dow Jones STOXX Global Select Dividend 100 Index has an annualized performance of 15.42% since its inception on 31 December 1998. It has outperformed the Dow Jones STOXX Global 1800 Index by 58% over the past five years. To be eligible for inclusion in the Dow Jones STOXX Global Select Dividend 100 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% in Europe and the Americas, 80% in Asia/Pacific the current year, or be a previous component. The weight of individual components in the Dow Jones STOXX Global Select Dividend 100 Index is restricted to 15% in order to prevent the index from being dominated by single high-dividend paying stocks. It is reviewed on an annual basis in March. Price and total return indexes are calculated in euro and US dollar.