Another record month for the DOW (+2.05%) and once again, an even bigger record month for the "Divi-X" Index (+7.91%). Most importantly, a very big change to the "Divi-X" Index. As a result of the merger between E I Du Pont De Nemours And Co (NYSE:DD) and Dow Chemical (NYSE:DOW) to form the DowDuPont Inc (NYSE:DWDP), as well as the discontinuation of the dividend, the "Divi-X" Index will be dropping E I Du Pont De Nemours And Co (NYSE:DD) from it's index and be replacing it with Cisco Systems, Inc. (NASDAQ:CSCO) effective Sept. 1st, 2017, the first trading day of the merger.
It is recommended that a position be closed when a company discontinues its dividend while using the "Divi-X" strategy, therefore, eliminating DuPont (DD) from our index was a no brainer. Since the "Divi-X" Index is a continuation of the results written about in 'The Dividend Times: An Introduction to The "Divi-X" System,' the index did not include Cisco Systems, Inc. because it did not pay a dividend when I compiled the index; now it does and I'm very pleased to be adding it to the "Divi-X" Index.
This represents the first major change to the "Divi-X" Index since its inception in 2009, and CSCO is already off to a good start with a beautiful 4.41% gain on the month. I'm excited to see the long-term results of this one using the "Divi-X" System while sporting a hefty 3%+ dividend.
Continued success on your investing endeavors and, as always, many happy returns.