The Dow Jones Select Dividend Index family of indices measures contain the top dividend paying stocks at the regional, country and global levels. One of the country-specific dividend index in this family is the DJ Canada Select Dividend Index. The main features of this index are:
- Thirty stocks are selected to the index annually based on dividend yield, subject to screening and buffering criteria.
- Components are weighted by indicated annual dividend.
In 2008, this index was down 30.80%. As of September 30th, the index has gained nearly 34%. The 5-year average annual total return is around 8%. The current dividend yield is 4.52%. The index is heavily concentrated with financials making up for nearly 72% of the portfolio.
The Top 10 holdings in the DJ Canada Select Dividend Index are:
1. National Bank of Canada
2. Bank of Montreal – BMO
3. Canadian Imperial Bank of Commerce – CM
4. Toronto-Dominion Bank – TD
5. Royal bank of Canada – RY
6. Bank of Novo Scotia – BNS
7. IGM Financial
8. Manitoba Telecom Services
9. TMX Group Inc
10.A.G.F. Management Ltd. Cl B NV
Related ETF: The iShares CDN Dividend Index Fund (XDV.TO) replicates the performance of Dow Jones Canada Select Dividend Index(SM). This ETF has an asset base of C$ 388M.
