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NYSE Euronext to launch a series of high dividend indices

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NYSE Euronext has announced the launch of a family of high dividend indices based on its European national blue chip indices: AEX, BEL 20, CAC 40 and PSI 20.

NYSE Euronext has announced the launch of a family of high dividend indices based on its European national blue chip indices: AEX, BEL 20, CAC 40 and PSI 20. This new series will be available from April 3rd, 2008.

Investors provided with additional opportunities to enter into  trading strategies based on blue chip indices 

The high dividend indices will consist of stocks characterised by the highest dividend yields1 during the previous calendar year. The CAC high dividend index includes 20 stocks; the AEX high dividend includes 12; both the BEL and the PSI high dividend indices include 10 stocks.

They are calculated as total return indices; the dividends taken into account will be the normal dividends, less withholding tax. Each index is built as a basket where weightings are determined by the relative dividend yields, each constituent being capped at 15 per cent.

‘The launch of this family of high dividend indices originates from increasing client demand,’ says Mark Adema, general manager, Euronext Indices.

‘They provide investors with additional opportunities to apply strategies using blue chip indices as a basis.’

Philippe Hajali, director of equity derivatives at Liffe, adds: ‘It is our intention to launch futures and options contracts on these high dividend indices in the near future. This will provide investors with even more trading opportunities and enable them to combine the risk management and leveraging benefits of derivatives with these innovative indices.’

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