Russell creates indexes to screen for increased cash dividends

By Devika Patel

Knoxville, Tenn., March 24 - Russell Investments and Indxis, Inc. said in a press release they have signed an agreement to create an array of products based on Indxis' proprietary Dividend Achievers methodology.

The Russell Dividend Achievers indexes will screen constituents of the industry-leading Russell Global Indexes for domestic companies that have increased regular cash dividend payments each year for the past decade and international companies that have done so for five consecutive years.

The products are expected to launch in the second quarter of 2009.

The new indexes initially will cover the U.S. broad market as reflected by the Russell 3000 index and the global market as reflected by the Russell Global index. The list of offerings also will include large- and small-cap indexes both for the U.S. and global markets.

For inclusion, companies must meet certain liquidity requirements in addition to demonstrating a proven history of earnings growth.

"We believe our rules-based methodology offers an ideal screen for the dividend achievers methodology, particularly for investors who seek a greater sense of security with blue-chip stocks within a particular segment of the global market," Ron Bundy, managing director for Russell indexes, said in the release. "This agreement again demonstrates the suitability of our construction methodology for a widening array of products."

Takoma, Wash.-based Russell is a provider of investment products.

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