SIX Swiss Exchange today announced the launch of the SPI Select Dividend 20 Index. The new index includes those 20 stocks from the SPI Index which show the highest historical dividend-payments and the most solid profitability.
The SPI Select Dividend 20 Index offers market participants a rules-based and transparent concept, which combines screens for high and stable dividend payments with screens for a company’s superior profitability, measured by return on capital (ROC).
The index universe for the SPI Select Dividend 20 Index is the SPI Index. In order to be included in the new index, stocks must have minimum average daily traded volume (ADTV) of CHF 2.0 million over the past twelve months, and have paid dividends in at least four out of the last five financial years.
This includes the current year’s dividend announcement or payment and the previous four years’ payments. Furthermore, stocks need a positive pay-out ratio to be included in the new index.
All companies that meet these criteria are ranked by dividend yield, and the top 30 companies make up the selection list for the SPI Select Dividend 20 Index. This list is then sorted by ROC in descending order, and the top 20 companies are selected for inclusion in the index.
The SPI Select Dividend 20 Index is weighted based on free-float market cap, with a single component’s weight capped at a maximum of 15%. The index is reviewed annually in March.
The SPI Select Dividend 20 Index is calculated in price and total return versions and available in CHF. Daily historical data is available back to March 19, 2007.