Two DJ STOXX Global Dividend 100 Index Components

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One of the many indices published by STOXX is the “Dow Jones STOXX Global Dividend 100 Index”. This index “offers investors the ideal tool to track high-dividend-yielding companies in the Dow Jones STOXX Global 1800 Index, a broad yet liquid benchmark index that covers the Americas, Europe and Asia/Pacific”.

The 100 stocks in this index is comprised of 40 stocks from the Americas and 30 stocks each for Europe and the Asia-Pacific. In this post, lets take a look at two components representing Singapore.

1.DBS Group Holdings Ltd. (DBSDY) is the largest bank in Singapore as measured by assets. DBS trades on the OTC markets in the USA. The current yield is 8.06%. On Dec 22, the company announced that it will raise $2.8B in a rights offering. The press release said”Proactive capital raising, initiated from position of strength, will make DBS one of the best capitalised banks in Asia”.

With very little or no exposure to the subprime mess in the US, DBS has a Tier 1 Ratio of 9.7% as of September 30, 2008. After the right issue, the Tier 1 Ratio will increase to 11.8%. These ratios are well above the minimum required by regulatory authorities.

2.United Overseas Bank Ltd (UOVEY) has “500 offices in 18 countries and territories in Asia Pacific, Western Europe and North America”. UOVEY trades on the OTC as well.It pays a dividend of 3.21%. Annual EPS growth in the last 5 years is 16.27%.

Do Dividends Matter ?

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Recently I came across the following research paper on the importance of dividends published by Dow Jones back in 2004.

ABSTRACT
“Numerous trends are examined that suggest recent increased interest in dividend income from equities is likely to continue and perhaps increase further well into the future. Existing equity indexes are found to measure a capital-gains-oriented investment strategy and not income oriented equity investment strategies. New design principles are described that are aimed at measuring the segment of the equity market that is income oriented. The resulting Dow Jones Select Dividend Index is backtested to 1991 and found to have outperformed many benchmark indexes.* Comparisons with other equity indexes find that it has also performed consistently with or better than indexes measuring conservative capital gains-oriented investment strategies.”

SUMMARY
Disenchantment with the recent bear market and the substantial reduction in federal taxes on corporate dividends in 2003 have sparked renewed interest among investors and money managers in dividend payouts. But a survey of the indexing field found no indexes available that measure the performance of companies that consistently pay dividends to their shareholders. Dow Jones Indexes took steps to fill that gap.”

To read more click Dividend Matter.

Source: Dow Jones

Mexican ADRs Trading in NASDAQ

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Mexico offers some good investment opportunities. Three ADRs from Mexico trade in the NASDAQ market. This post provides a brief overview of them:

1. Grupo Aeroportuario del Centro Nort SAB (OMAB) runs 13 airports in Mexico serving the metropolitan area of Monterrey, three tourist destinations (Acapulco, Mazatlán and Zihuatanejo), regional centers (Chihuahua, Culiacán, Durango, San Luis Potosí, Tampico, Torreón and Zacatecas) and border cities (Ciudad Juárez and Reynosa). OMAB’s dividend yield is 7.65% and the annual revenue has increased at about 12% in the last 5 years. On December 8, the company announced that December passenger traffic was down 13.3%.

2.Telefonos de Mexico (TFONY) is a fixed-line telecom and data services provider in Mexico. The current yield is 2.9%. TFONY is one of TheStreet.com’s Top Five All-Round Value stocks.

3.America Movil, S.A.B. de C.V. (AMOV) is a wireless communication services provider in Latin America. At the end of last year, AMOV had 153.4 million subscribers in 17 countries. AMOV is the largest holding in the iShares MSCI Mexico Investable Market Index Fund (EWW). AMOV pays a dividend of 1.63%.

Stock Exchanges of the World and the Number of Listed Companies

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** Update: *** Go to The Number of Listed Companies by Country 2016 ***

Have you ever wondered how many stocks are listed in the major stock exchanges of the world?. I did and this post is the result of my research. My source for this piece is the “World Federation of Exchanges(WFE)“. It is an association of 56 regulated exchanges around the world.

Data used here is as of the end of November,2008. There a total of 46,678 stocks traded in the member exchanges. This count does not include investment funds. The following tables show the various exchanges and the number of domestic and foreign listings in them:

1.Americas

[TABLE=128]

2.Asia-Pacific

[TABLE=129]

3.Europe-Middle East-Africa

[TABLE=130]

Source: World Federation of Exchanges(WFE)

Analysis:

  • The exchange with the the lowest number listings – just 19 – is the Malta SE in the country of Malta in Europe. Though there may be exchanges in the world that may have fewer companies listed. But those exchanges are not listed here since they are not members of the World Federation of Exchanges.
  • Luxemborg SE has the most foreign companies listed (87%) followed by Bermuda SE (69%).
  • The Bombay Stock Exchange in India has the largest number of equities listed.
  • While foreign companies represent 14% of the stocks listed in the New York Stock Exchange (NYSE Group), they accounted for $11.4 Trillion of the $27.1 Trillion market values as of Dec 31,2007.
  • Just 1% of the listed companies in the Tokyo SE are non-Japanese companies.
  • The tiny city state of Singapore has 458 listed companies but 40% of them are foreign companies.
  • 22% of the listings in the London SE are non-British companies.
  • The BME Spanish Exchanges in Spain has more than four times the number of listing in the Deutsche Borse.
  • USA is the number one in terms of stocks listed. The three organized stock exchanges in the USA (NYSE, Amex and NASDAQ) have a total of 5,598 companies trading in them.The number two is Bombay SE in India and the third is The TSX group of Canada.
  • A total of 859 foreign equities trade in the big 3 US exchanges.

Note:
Deutsche Bourse : Excluding the market segment “Freiverkehr” (unofficial regulated market)
Lima SE : Includes 26 foreign companies with shares negotiated under a special modality
Korea Exchange : includes Kosdaq market data
OMX Nordic Exchange : OMX includes Copenhagen, Helsinki, Iceland, Stockholm, Tallinn, Riga and Vilnius Stock Exchanges
Singapore Exchange : Main Board & Sesdaq
TSX Group : includes companies listed on TSX Venture
Tehran SE : Some 90 companies have been relegated to the “Unofficial Board” which is a “Temporary Board”

**Update: For the 2015 data, go to: The Number of Listed Companies by Country (TFS, Mat 14, 2016)