Just read ATO is being kicked out of the S&P High Yield Dividend Aristocrats Index. I guess a lot of $$ is in index funds tied to this index. Other kicked out are HRL UGI and UVV. Added are ORI and BRC.
What surprises me is the choice of companies being removed/added. HRL I can understand as it yields under 2%, but ATO, UGI and UVV each yield 3.5 to 4%+, and have long histories of increasing dividends. Seems like they are perfect candidates for a High Yield Dividend Aristocrats index. On the other hand, BRC yields well under 2% and, while ORI yields over 8%, they are paying a 70¢/share dividend while losing 16¢ last year, they are estimated to lose 90¢ this year, and are only expected to earn 15¢ in 2012. Couple of strange choices for an index that requires annual dividend increases and a high yield for membership.