Fannie Taken Off Dow Jones Dividend List

Dow Jones Select Dividend Index is deleting Fannie Mae from the index and replace it with Astoria Financial because Fannie's recent halving of dividends caused the company to fall below the index's yield requirement.

To be listed on the index, which includes 100 stocks from the Dow Jones U.S. Total Market Index, companies must be among the top 200 by yield, Dow Jones Indexes said.

Dow Jones said additions to and deletions from the Select Dividend Index do not reflect an opinion on the investment merits of the companies.

In January, Fannie Mae announced a reduction in its common stock dividend from $0.52 per share to $0.26 per share in order to boost the company's capital.

A number of companies have been reporting that the dividend cut has had a negative effect on their earnings.

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