FORT MILL, S.C., Jan. 28 /PRNewswire/ -- Indxis, Inc., the Index Services unit of Mergent, Inc., today announced the addition of new members to the elite groups of stocks in its Dividend Achievers™ Indices. The additions come as part of the Dividend Achievers annual reconstitution, in which companies are added or removed to the indices based on a stringent set of criteria. These changes will be effective after the close of trading on January 29, 2010.
Dividend Achievers are companies that have increased annual regular cash dividends for at least the past 10 consecutive years and have met specific liquidity screening criteria. Dividend Achievers are typically companies with strong cash reserves, a solid balance sheet and a proven record of consistent earnings growth. Mergent has been identifying these strong dividend-paying companies for more than 25 years.
89 companies were removed from the Broad Dividend Achievers Index, and 18 new companies were added. Companies classified as Financial, Real Estate, or Insurance accounted for nearly 75% of the deletions.
Dividend Achievers Indices are powerful tools for investors seeking a long-term portfolio with higher risk-adjusted returns. For the trailing 12-month period ended December 31, 2009, the Broad Dividend Achievers Index outperforms the S&P 500 Index in the 10-, 15- and 20-year periods, with less volatility.
RISK (MODERN PORTFOLIO THEORY) STATISTICS ----------------------------------------- 1 Year ------ Statistic US Broad Dividend Achievers S&P500 Beta 1.03 1.00 Correlation 0.98 1.00 Annualized Return 11.40% 26.46% Standard Deviation 23.39% 22.28% Information Ratio -2.96 3 Years ------- Statistic US Broad Dividend Achievers S&P 500 Beta 0.87 1.00 Correlation 0.95 1.00 Annualized Return -7.62% -5.63% Standard Deviation 18.31% 19.91% Information Ratio -0.38 5 Years ------- Statistic US Broad Dividend Achievers S&P 500 Beta 0.86 1.00 Correlation 0.94 1.00 Annualized Return -1.26% 0.42% Standard Deviation 14.67% 16.05% Information Ratio -0.36 10 Years -------- Statistic US Broad Dividend Achievers S&P 500 Beta 0.73 1.00 Correlation 0.86 1.00 Annualized Return 1.15% -0.95% Standard Deviation 13.70% 16.13% Information Ratio 0.21 15 Years -------- Statistic US Broad Dividend Achievers S&P500 Beta 0.78 1.00 Correlation 0.88 1.00 Annualized Return 8.77% 8.04% Standard Deviation 13.98% 15.81% Information Ratio 0.05 20 Years -------- Statistic US Broad Dividend Achievers S&P500 Beta 0.82 1.00 Correlation 0.90 1.00 Annualized Return 8.79% 8.21% Standard Deviation 13.77% 15.03% Information Ratio 0.05 Data as of 12/31/2009
Investors seeking exposure to high-quality dividend-paying companies may invest in an array of investment products, including open and closed-end mutual funds and exchange-traded funds, based on the Dividend Achievers methodology. Major financial firms, including PowerShares Capital Management, BlackRock, Vanguard, and others offer these products.
A complete list of the new 2010 Dividend Achievers constituents is available at www.indxis.com.
Indxis, Inc. is a comprehensive index services provider, offering a full suite of services including: index calculation, administration, distribution, index licensing, backtesting, and custom index software creation. Indxis-licensed investment products are offered by major financial firms in the U.S. and Canada, and have approximately $3 billion in assets under management. Our index calculation platform has a proven track record of calculating and disseminating some of the world's largest and most recognizable indices. For more information, visit www.indxis.com.
Mergent, Inc. is a leading provider of business and financial information on global publicly listed companies. Based in the U.S., the company maintains a strong international presence, with offices in New York, Fort Mill, San Diego, London, Tokyo and Melbourne.
With roots tracing back to 1900, Mergent operates one of the longest continuously collected databases of: descriptive and fundamental information on domestic and international companies; pricing and terms and conditions data on fixed income and equity securities; and corporate action data. Mergent delivers this data through desktop applications, data feeds and other custom services to a global client base. For more information, visit www.mergent.com.
SOURCE Indxis, Inc.