FTSE and JSE launch dividend index

FTSE and the Johannesburg Securities Exchange (JSE) have launched a tradable index. The FTSE/JSE Dividend Index takes companies from the FTSE/JSE Top 40 Index and FTSE/JSE Mid Cap Index, excluding real estate companies, and ranks them by their one-year forecast dividend yield.

The top 30 companies make up the FTSE/JSE Dividend Index and the constituents’ weightings in the index are determined by their dividend yield. The index is the first dividend weighted index covering South African stocks. It caters for both South African domestic and international investors.

FTSE says constituents are liquidity screened to make the index tradable and suitable for the creation of financial products, such as certificates, structured products, and Exchange Traded Funds (ETFs).