FTB-C000187 / Formula component

Dividend Points

Dividend points express eligible constituent dividends as a contribution measured in the point scale of an index.

Also known asindex dividend points

Intermediate Formula defined 1 linked topicPublished

Definitions

In plain terms

They translate aggregate dividend value into index points using constituent shares, factors, currency, and the index divisor.

Technical

The measure requires dividend amount and type, ex-date, constituent quantity and factors, FX, tax basis, correction policy, and divisor state.

Scope

Dividend points are not the same as dividend yield, cash paid to one investor, or total-return index points.

Formula

DP = sum(D_i * Q_i * F_i * FX_i) / Divisor
LaTeX: DP=\sum_i D_iQ_iF_iFX_i/Divisor
SymbolMeaningUnit
D_ieligible dividend per securitylocal currency per share
Q_ieligible index sharesshares
F_iapplicable index factorsratio
FX_icurrency conversion factorbase currency per local currency
Divisorindex divisorbase currency per index point

Output unit: index points

Examples

  • A governed methodology records dividend points with its source, cutoff, units, parameters, and effective version.

Common misconceptions

  • Dividend Points does not have one universal implementation without the declared methodology, data basis, and constraints.

Concept relationships

Prerequisites

Related

Required by

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D03-F04-A05 Primary

Evidence and governance

  1. S&P Dow Jones Indices Index Mathematics Methodology S&P Dow Jones Indices · first party methodology

    Supports: preferred label, short definition, technical definition, formula

    Limits: Authoritative for the provider's indices; conventions are not universal defaults for every index or security-level return series.

  2. Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract

    Supports: variant distinction

    Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.

Reviewed by
fintech-builder-batch-004
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
published
Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.