Nikkei has announced significant changes to its dividend-focused indices as part of its periodic review, with the adjustments set to take effect from June 30. According to the first source, Nikkei will add 12 stocks, including Dai-ichi Life Holdings, to the Nikkei Progressive and High Dividend Stock Index, while removing 12 stocks such as Sumitomo Mitsui Trust Group [1]. Additionally, three stocks, including Sekisui House, will be added to the Nikkei Consecutive Dividend Growth Stock Index, with Astellas Pharma being among those removed [1]. The selection criteria for these indices are based on the frequency of maintaining or increasing dividends and the number of consecutive dividend increases, using data as of the end of May [1].
The second source reports that Nikkei will add 11 stocks, including Dai-ichi Life Holdings, to the Nikkei 225 High Dividend Yield Stock 50 index, while removing eight stocks such as Mizuho Financial Group [2]. The index, which comprises 50 Nikkei 225 components with high dividend yields, is reviewed based on projected dividend yields as of the end of May [2]. Following the reshuffle, the weighted average projected dividend yield for the updated constituents is 3.96% [2]. Both sources note that there will be fewer deletions than additions, reflecting prior removals made since the last annual review [1][2].
There is a discrepancy between the sources regarding the number of stocks added to the high dividend index: Source 1 states 12 stocks will be added, while Source 2 reports 11 stocks will be added [1][2]. Both sources agree that Dai-ichi Life Holdings is among the new additions and that the changes will be implemented from June 30 [1][2].
No explicit market reactions or analyst opinions are provided in the sources. The focus remains on the methodology of index selection and the updated projected dividend yield for the Nikkei 225 High Dividend Yield Stock 50 index [2].
CONCLUSION
Nikkei's periodic review brings notable changes to its dividend-focused indices, with more additions than deletions and Dai-ichi Life Holdings among the new constituents. The updated Nikkei 225 High Dividend Yield Stock 50 index will have a weighted average projected dividend yield of 3.96%. These adjustments reflect ongoing efforts to align index composition with dividend performance and yield projections.