S&P DJI Rolls Out Shariah Composite Index

February 24, 2014

In January, S&P Dow Jones Indices launched a new index that will give investors exposure to the highest-yielding Shariah-compliant stocks from the Gulf Cooperation Council (GCC).

The new S&P GCC Composite Shariah Dividend Index comprises the 30 highest-yielding stocks from the S&P GCC Composite Shariah Index, which is made up of Shariah-compliant stocks and also acts as a benchmark for the six GCC countries—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

For stocks to be considered Shariah-compliant, and therefore included in either index, they must meet certain criteria regarding liquidity, dividend growth and dividend sustainability.

The component list is subject to a minimum of two stocks per country, and the constituents are weighted by their indicated annual dividend yield.

 

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