Nikkei will add 11 stocks, including Dai-ichi Life Holdings, to its High Dividend Yield Stock 50 index as part of a periodic review, while removing eight stocks, including Mizuho Financial Group. The changes take effect June 30.
The reshuffle of the Nikkei High Dividend Yield Stock 50 Index impacts investor portfolios holding these stocks and signals potential shifts in market focus towards companies with higher dividend yields.
Nikkei announced that 11 stocks, including Dai-ichi Life Holdings, will be added to its High Dividend Yield Stock 50 index as part of a periodic review. Concurrently, eight stocks, including Mizuho Financial Group, will be removed. The index, which comprises 50 components from the Nikkei 225 with high dividend yields, is reviewed annually in June based on projected dividend yields calculated as of the end of May.
The reshuffle, effective from June 30, will result in a weighted average projected dividend yield of 3.96% for the index. The index utilizes a dividend yield weight method, with constituent weights adjusted by liquidity factors based on trading values over the past year. The index provider noted that the number of deletions is fewer than additions, reflecting prior removals made since the last annual review.