Nikkei has announced revisions to its dividend-focused indices, with significant changes to constituent stocks following its periodic review. For the Nikkei Progressive and High Dividend Stock Index, 12 stocks, including Dai-ichi Life Holdings, will be added, while 12 stocks, such as Sumitomo Mitsui Trust Group, will be removed. The selection criteria for this index are based on stocks with a high number of instances of maintaining or increasing dividends, known as progressive dividends, and are ranked by forecast dividend yield. The review uses data as of the end of May, and the changes will take effect from calculations on June 30 [1].
Additionally, Nikkei will add 11 stocks, including Dai-ichi Life Holdings, to its Nikkei 225 High Dividend Yield Stock 50 index, while removing eight stocks, including Mizuho Financial Group. The index consists of 50 Nikkei 225 components with high dividend yields and is reviewed based on projected dividend yields as of the end of May. After the reshuffle, the weighted average projected dividend yield for the updated constituents is 3.96%. The index will see fewer deletions than additions, reflecting prior removals made since the last annual review [2].
Nikkei is also revising the Nikkei Consecutive Dividend Growth Stock Index, adding three stocks, including Sekisui House, and removing Astellas Pharma. The selection for this index is based on the number of consecutive dividend increases. The Nikkei Dividend Growth Stock Index will see fewer deletions than additions, which is attributed to prior removals since the last annual review [1].
The changes across all indices are scheduled to take effect from June 30. For further details, Nikkei directs readers to its indexes website [1][2].
CONCLUSION
Nikkei's periodic review of its dividend-focused indices will result in the addition of several stocks, including Dai-ichi Life Holdings, and a moderate reshuffling of constituents. The updated Nikkei 225 High Dividend Yield Stock 50 index will have a weighted average projected dividend yield of 3.96%. These changes, effective June 30, reflect Nikkei's ongoing commitment to maintaining indices that prioritize dividend performance.