Category: Money tips Release Date: 2006-01-22
After the dot-com bubble burst, the U.S. listed companies, financing and profit distribution behavior has undergone many changes, among them an increase in cash dividends. The tax cut bill in mid-2003 reduced the company's cash dividend payment of federal tax rates, to further promote the distribution of listed companies to increase the cash dividend trend. Subsequently, there is a lot of index of service providers has started to compile and distribute a dividend index, which is more familiar to investors in the dividend index has two, namely, the Dow Jones Select Dividend Index (Dow Jones US Select Dividend Index) and the S & P 500 Dividend Aristocrats Index (S & P 500 Dividend Aristocrats Index).
The Dow Jones Select Dividend Index
In November 2003, the U.S. Dow Jones Announces the Dow Jones Select Dividend Index (Dow Jones US Select Dividend Index), the highest dividend yield from the 100 shares of listed companies constitute the United States. According to the end of June 1996 to the end of June 2006 the index back data ten years, the S & P 500 index return of 89.40%, the Dow Jones Select Dividend Index rate of return of 148.56%, if we consider dividend re-investment, then the Road Jones Select Dividend Index for the ten-year total return of 263.69%.
In the Dow Jones Select Dividend Index published at the same time, Barclays Global Investors (Barclays Global Investor) on the subject has developed its ETF products, the iShares Dow Jones Select Dividend Index Fund (DVY), and in the Americas Exchange ( American Stock Exhange) traded. The product became the fastest-growing fund in recent years, one of the products, the size of the Fund's assets until the end of June 2006 reached 6.081 billion U.S. dollars.
By the end of 2005, a German investment company index Indexchange also the subject of the Dow Jones Select Dividend Index ETF products launched, and the Frankfurt Stock Exchange (Frankfurt Stock Exchange) traded.
In addition to Dow Jones Select Dividend Index addition, Dow Jones company also has released a number of countries and regions Select Dividend Index, currently includes Canada, Britain, France, Germany, Italy, Spain, Sweden, the Netherlands, Japan, Australia, other parts of Asia and the Pacific and so on, forming a Select Dividend index family. Among them, the Dow Jones Canada Select Dividend Index (Dow Jones Canada Select Dividend Index) and the Dow Jones Asia Pacific Select Dividend Index (Dow Jones Asia Pacific Select Dividend 30 Index) has been used as the subject of ETF products.
S & P 500 Dividend Aristocrats Index
In May 2005, Standard & Poor's Corporation announced the release of the S & P 500 Dividend Aristocrats Index (S & P 500 Dividend Aristocrats Index), by the S & P 500 index constituent stocks in the cash dividend over the past 25 years, continued growth in large-cap blue chip composition. According to the end of June 1996 to the end of June 2006 the index back data ten years, the S & P 500 index return of 89.40%, the S & P 500 Dividend Aristocrats index rate of return of 123.87%, if we consider dividend re-investment, then the standard S & P 500 Dividend Aristocrats index of the ten-year total return of 184.73%.
In addition to the S & P 500 Dividend Aristocrats Index, the S & P also announced the S & P Europe 350 Dividend Aristocrats Index (S & P Europe 350 Dividend Aristocrats Index).
