Standard & Poor's today launched the S&P High Yield Dividend Aristocrat index, designed to measure the performance of the 50 highest yielding stocks in the S&P Composite 1500 that have paid increasing dividends for 25 consecutive years, according to Srikant Dash, index strategist at S&P. He said ETFs on the new index, sponsored by State Street Corp., will begin trading on the American Stock Exchange on Nov. 15.
Mr. Dash said 87 companies in the S&P 1500 currently qualify for inclusion in the index. The index is currently yielding 3.3%, he said.
The new index, which is weighted by indicated yield, incorporates minimum market capitalization and liquidity screens. Index constituents are reweighted quarterly, and the index universe is reviewed every December.