# 1.6.9 Income return

MAY 2024

Income return, or dividend or **cash yield**, measures the income received in relation to the initial value of the asset. The index-level income return is calculated as the weighted average using the index weight of each constituent. Outlier returns of over 200% are usually due to one-off payouts and are filtered out from this computation.

where:

denotes an index-constituent coupon/dividend payment in the quarter between times *t* and *t-1* expressed in reporting currency

denotes constituent *i*'s fair value estimate at time *t-1* expressed in reporting currency

denotes the weight of constituent *i* at time *t-1*.

In order to show the cash yield trends, **5 and 10 year moving averages** of the Index income return are computed.

This is an input to the computation of cash returns contribution