Nikkei Inc. will launch 2 dividend growth indexes, Nikkei Consecutive Dividend Growth Stock Index & Nikkei Progressive and High Dividend Stock Index.

TOKYO, JAPAN, June 23, 2023/EINPresswire.com/ -- On June 30, 2023, Nikkei Inc. will commence the calculation and publication of two new equity indexes that specifically emphasize dividend payouts of Japanese companies: the “Nikkei Consecutive Dividend Growth Stock Index” and the “Nikkei Progressive and High Dividend Stock Index”.

With global stock markets facing deep uncertainty driven by the less predictability of the monetary policies in leading nations, investors have shifted their attention towards dividend payouts as a crucial component of shareholder returns over the past year or two. Consecutive dividend growth can serve as an investment strategy; consistent annual dividend growers can be deemed as companies with a stable income base in the long term. Nikkei has developed the Nikkei Consecutive Dividend Growth Stock Index as an index that reflects the stock price movement of Japanese companies consistently increasing dividends. The index is calculated by selecting up to 70 stocks listed in Japan with the longest track records of consecutive dividend increases, which must have a minimum duration of 10 years in principle.

While investors place greater emphasis on higher dividend yields, an increasing number of listed companies are endeavoring to attract investments by adopting a progressive dividend policy which increases dividend annually or at least maintains the same level as the previous year over the long term. With this background, Nikkei has developed the Nikkei Progressive and High Dividend Stock Index. The index comprises 30 issues with the highest expected dividend yields and a track record of increasing or at least maintaining dividend payouts for a minimum of 10 years.

Nikkei has been calculating and publishing dividend-related indexes, including the Nikkei 225 High Dividend Yield Stock 50 Index. The lineup is enhanced and expanded with the addition of the Nikkei Consecutive Dividend Growth Stock Index and the Nikkei Progressive and High Dividend Stock Index.

§ Summary of the “Nikkei Consecutive Dividend Growth Stock Index”
- Constituents are chosen from all the equities listed in Japan.
- The index comprises up to 70 stocks with the longest track records of consecutive dividend growth, which must have a minimum duration of 10 years.
- The index is annually reviewed and reshuffled on the final business day of June.
- The index is calculated on an end-of-day basis based on market capitalization with 5% cap for each constituent weight.
- The historical index is retroactively calculated from June 30, 2010 (base index = 10,000).

§ Summary of the “Nikkei Progressive and High Dividend Stock Index”
- Constituents are chosen from all the equities listed in Japan.
- The index comprises 30 issues with the highest expected dividend yields using Nikkei’s forecast and a track record of increasing or at least maintaining dividend payouts for a minimum of 10 years.
- The index is annually reviewed and reshuffled on the final business day of June.
- The index is calculated on an end-of-day basis based on market capitalization with 7% cap for each constituent weight.
- The historical index is retroactively calculated from June 30, 2010 (base index = 10,000).

※ Refer to Index Guidebooks for detailed rules of calculation and constituent review processes.

§ Historical Nikkei Consecutive Dividend Growth Stock Index (estimation)
（chart1）


§ Historical Nikkei Progressive and High Dividend Stock Index (estimation)
（chart2）

§ Comparison of estimated dividend yields (End of May 2023)
Nikkei Consecutive Dividend Growth Stock Index 2.32% (index weight basis*)
Nikkei Progressive and High Dividend Stock Index 4.80% (index weight basis*)
Nikkei 225 1.90% (index weight basis)
(*) Estimated values using components at the commencement date of the publication.

https://indexes.nikkei.co.jp/nkave/archives/news/20230614E_1.pdf
https://indexes.nikkei.co.jp/en/nkave

Public Relations Office
Nikkei Inc.
pr@nex.nikkei.co.jp
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