I’ve also heard of The Dow 10. Is it the same as the Dow Jones High Yield Select 10 Index?
The Dow 10 and the Dow Jones High Yield Select 10 Index are very similar. The main difference between the two is the formula used to calculate yield, which in turn is used for stock selection. The Dow 10 uses historical dividends for the calendar year, whereas the Dow Jones High Yield Select 10 Index uses indicated annual dividend. The other notable difference between the two indexes is their treatment of stocks that are removed from the Dow Jones Industrial Average during the course of the year. The Dow 10 removes these stocks immediately to reflect changes to the Dow Jones Industrial Average, whereas the Dow Jones High Yield Select 10 Index retains these stocks as components until the next annual review.
