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Aozora Bank to Exit Nikkei 225 High Dividend Yield Index Amid Zero Dividend Forecast

The bank's anticipated zero year-end dividend prompts its removal from the index, with adjustments set for the June annual review
Japan
a 8304.TSE Mid and Small Cap 2000
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Aozora Bank will be removed from the Nikkei 225 High Dividend Yield Stock 50 Index effective March 11, following a projection of a year-end dividend of zero. This move, announced by the index provider Nikkei, adheres strictly to the indexing criteria that mandate the removal of any company forecasted not to distribute dividends. The index, which comprises companies listed on the Nikkei Stock Average known for high dividend yields, enforces a rule that prohibits the inclusion of companies whose estimated dividends are zero, ensuring the index accurately represents stocks that consistently provide shareholder value through dividends.

Following this development, Nikkei has opted not to immediately replace Aozora Bank, thereby reducing the index’s constituents to 50 until the next annual review in June. This decision emphasizes the index’s commitment to featuring a select group of companies that satisfy specific dividend yield criteria, serving as a benchmark for investors interested in dividend-generating stocks. The exclusion of Aozora Bank highlights the fluid nature of stock indices, which are regularly updated to reflect the prevailing financial environment.

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