The index is a non-market cap weighted index comprising 70 Japanese stocks with high dividend yields. The index, like the Nomura Japan Equity High Dividend 70 published in 2012, was designed to realize a high dividend strategy through passive investment and to make it easier to invest even with a larger scale of assets.
Whereas the High Dividend 70 is equal-weighted, the new index is total-dividend-weighted.
The component stock weights for the index are determined on the basis of total dividends (the total dividend average of a component stock as a percentage of the total). Compared with the equal-weighting method, the trading impact at the time of reconfiguration can be held down. In addition, stocks are screened for DOE (total dividends/shareholders’ equity) to take quality and stability of dividends into account, making it possible to measure shareholder returns both in terms of dividend policy and share buybacks.
The index is designed to facilitate a concentrated investment in domestic high dividend stocks at low cost for long-term investors with a larger scale of assets. In order to accommodate operating businesses of the index-related products, the index is constructed solely with investable stocks in accordance with its objective constructing rules.
The index is calculated by Nomura. The index value and rulebook are available at: http://qr.nomuraholdings.com/en/nhd...
Nomura will continue to provide products and services that meet investors’ needs by developing financial products linked with the index.
