1.6.9 Cash return

Cash return, or dividend or cash yield, measures the cash received in relation to the initial value of the asset. The index-level cash return is calculated as the weighted average using the index weight of each constituent.

where:

 denotes an index-constituent cash payment to the equity investors (including dividends on equity, interest and repayment of shareholder loans) in the period 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 the price and cash returns contribution.