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/nhdivd/index.html
Nomura will continue to provide products and services that meet investors’ needs by
developing financial products linked with the index.
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