European index provider STOXX Ltd has launched the first pan-European select dividend indexes. The Dow Jones STOXX Select Dividend 30 Index,...

European index provider STOXX Ltd has launched the first pan-European select dividend indexes. The Dow Jones STOXX Select Dividend 30 Index, covering Europe, and the Dow Jones EURO STOXX Select Dividend 30 Index, covering the Eurozone, track the 30 highest dividend-paying stocks relative to their respective home markets. "The Dow Jones STOXX Select Dividend 30 index and the Dow Jones EURO STOXX Select Dividend 30 index combine the main factors of the high-dividend investment concept: net dividend yield, based on a diversified pan-European universe and the leading domestic dividend-paying companies," said Lars Hamich, managing director, STOXX Ltd. "Not only are the companies selected on the basis of dividend criteria, the weighting of the companies in the index is purely based on dividends. These factors make this index family unique and innovative. The size of a company doesn't determine its importance within the index, only the dividend yield does." The selection process of these new select dividend indexes is rule-based and is targeted to identify the leading domestic dividend-paying companies. Index components are weighted by their indicated annual net dividend yield. The largest dividend-yielding companies have the highest weight in the index. Individual component weightings are capped at 15 per cent.