We are proud to announce that the First Trust NASDAQ Rising Dividend Achiever ETF (symbol: RDVY), based on the NASDAQ US Rising Dividend Achiever Index, launched on January 7, 2014, making it the first Exchange-Traded Fund to launch this year.
The NASDAQ US Rising Dividend Achiever index focuses on companies that have track records of boosting their payouts while maintaining strong financial metrics. To be included in the NASDAQ US Rising Dividend Achievers Index, companies must have paid a dividend in the trailing 12-month period greater than the dividend paid in the trailing 12-month period three and five years prior The Index then utilizes screens on companies’ financial condition to select the names that are in the best shape to continue to increase dividends moving forward by looking at each company’s earnings and a high cash to debt ratio.
The NASDAQ US Rising Dividend Achiever Index 50-stock lineup includes some familiar names with multi-decade dividend increase runs, including Exxon Mobil (XOM), Chevron (CVX) and Coca-Cola (KO). The index also can also include the future dividend leaders including those in the tech sector such as Cisco (CSCO), Oracle (ORCL) and Apple (AAPL).
The NASDAQ US Rising Dividend Achieves Index is the latest dividend index from NASDAQ OMX Global Indexes to be used by an ETF sponsor.
In December 2012, NASDAQ OMX acquired Mergent’s Dividend Achievers indexes, the leading brand of indexes tracking companies with strong long-term dividend growth.
“We’re taking the highly successful Dividend Achievers concept and turning it up a notch to bring a new solution to dividend focused investors who are tuned into combating rising rates while maintaining solid price appreciation. We have the right dividend story for this year with the US Rising Dividend Achiever Index. This product is an innovative way to couple exposure to traditional dividend names alongside the quickly growing dividend companies,” said Robert Hughes, Vice President, NASDAQ OMX Global Indexes.
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