Friday, November 24, 2006

Indices One Can Use To Benchmark Performance of Dividend Paying Stock Portfolios

Following are indices one can use to compare the performance of a dividend growth portfolio versus a dividend index. These indices are maintained by Mergent Inc and the Dividend Achievers Indices are as follows:

  • Mergent Broad Dividend Achievers Index (DAA): The Index is designed to track the performance of dividend paying companies that meet the "Dividend Achievers" requirements. To become eligible for inclusion in the Index, a company must be incorporated in the United States or its territories, trade on the NYSE, NASDAQ or AMEX, and have increased its annual regular dividend payments for the last 10 or more consecutive years. In addition, Mergent requires that a stock's average daily cash volume exceed $500,000 per day for the two month period prior to reconstitution. The Index is calculated using a modified market capitalization weighting methodology and is published by the AMEX under ticker symbol “DAA”.
  • Mergent Dividend Achievers Select Index (DVG): The Index is designed to track the performance of dividend paying companies that meet the "Dividend Achievers Select Index" requirements incorporated in the United States or its territories, trade on the NYSE, NASDAQ or AMEX, and have increased its annual regular dividend payments for the last 10 or more consecutive years. In addition, Mergent requires that a stock's average daily cash volume exceed $500,000 per day for the two month period prior to reconstition. The Dividend Achievers Select Index is calculated using a modified market capitalization weighting methodology. The Index is calculated by the American Stock Exchange under the symbol DVG.
  • KLD Dividend Acheivers Social Index (ESG): Jointly developed using KLD's accepted environmental, social, and goverance (ESG) indexing process and coupled with Mergent, Inc.'s Dividend Achievers™ requirements, the KLD Dividend Achievers Social Index (DASI) is the first Social Index benchmark for equity portfolios subject to ESG screens and dividend criteria. The KLD Dividend Achievers Social Index (DASI) is an equal weighted common stock index comprised of environmental, social and goverance (ESG) screened performers with 10 or more consecutive years of regular dividend growth.
  • Mergent Dividend Achievers50 Index (DAY): The Index, a subset of the Broad Dividend Achievers Index, is designed to track the performance of the top 50 highest yielding dividend paying companies that meet requirements to be classified as "Dividend Achievers". To become eligible for inclusion in the Dividend Achievers Index a stock must be incorporated in the United States, trade on the NYSE, NASDAQ or AMEX, and have increased its annual regular dividend payments for the last 10 or more consecutive years. In addition, Mergent requires that a stock's average daily cash volume exceed $500,000 per day for the two month period prior to reconstitution. The Index is calculated using a yield weighting methodology and is published by the AMEX under ticker symbol DAY.
  • Mergent High Growth Rate Dividend Achievers Index (DAH): The High Growth Rate Dividend Achievers Index, a subset of the Broad Dividend Achievers Index, is designed to track the performance of top 100 Dividend Achievers™ companies by their respective 10 year compound annualized dividend growth rate. To become eligible for inclusion in the High Growth Rate Dividend Achievers Index , a company must be incorporated in the United States or its territories, trade on the New York Stock Exchange, the NASDAQ system or the American Stock Exchange, and have increased its annual regular dividend payments for the last 10 or more consecutive years. In addition, Mergent requires that a stock''s average daily cash volume exceed $500,000 per day in the two month period prior to reconstition. The High Growth Rate Dividend Achievers Index is calculated using a modified market capitalization weighting methodology. The Index is calculated by the American Stock Exchange under the symbol DAH.
  • Mergent NASDAQ Dividend Achievers Index (DVGT): The NASDAQ Dividend Achievers Index, a subset of the Broad Dividend Achievers Index, is designed to track the performance of Dividend Achievers companies that trade on NASDAQ. To become eligible for inclusion in the NASDAQ Dividend Achievers Index, a stock must be incorporated in the United States, trade on NASDAQ and have increased its annual regular dividend payments for the last 10 or more consecutive years. In addition, Mergent requires that a stock''s average daily cash volume exceed $500,000 per day in the two month period prior to reconstitution. The Index is calculated using a market capitalization weighting methodology. The Index is published by NASDAQ with the ticker DIVQ for the price appreciation and DVQT for the total return.

In addition to the U.S. domestic dividend achievers, Mergent maintains three additional indices covering international and Canadian dividend achievers. They consist of:
Source: Mergent's Dividend Achievers


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