FAQ

Frequently Asked Questions
S&P 500® Dividend Points Index
1. What are S&P Dow Jones Indices’ Dividend Point Indices? These indices aredesigned to track the total dividend payments from the constituents of an underlying
index. The level of the index is based on a running total of the dividends from theunderlying index’s constituents. Some indices reset to zero on a periodic basis,
generally quarterly or annually. Thus, the index seeks to measure the total dividends
paid in the underlying index since the previous rebalancing date, or the base date forindices that do not reset on a periodic basis. For quarterly indices, the index resets tozero after the close on the third Friday of the last month of the quarter in order tocoincide with futures and options expiration. For annual indices, the index resets to zeroafter the close on the third Friday of December in order to coincide with futures andoptions expiration.
The formula for calculating the dividend point index on any date, t, for a given
underlying index, x, is:𝑡

𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝐼𝑛𝑑𝑒𝑥𝑡,𝑥 = ∑

ID𝑖,𝑥

𝑖=𝑟+1

where:
𝐼𝐷𝑖, 𝑥 = The index dividend of the underlying index x on day i,𝑡 = The current date, and𝑟 + 1 = The trading date immediately following the reset date of the index (or base date
if the index does not reset periodically).
The index dividend (ID) of the underlying index is calculated on any given day as thetotal dividend value for all constituents of the index divided by the index divisor. The
total dividend value is calculated as the sum of dividends per share multiplied by index
shares outstanding for all constituents of the index which have a dividend going ex on
the date in question.
Please refer to the S&P Dow Jones Indices’ Index Mathematics Methodology for moredetail.

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S&P 500 Dividend Points Index

2. What are “dividend points?” Index points refer to the level of an index. For example,
if the S&P 500 is trading at 2,100, it is said to have a level of 2,100 points. Dividend
points specifically refer to the level of index points that are directly attributable to thedividends of index constituents.
3. What’s the difference between dividend points indices and other types of indices,like price return and total return indices? Price return indices represent changes in
the market capitalization of index constituents. They do not account for dividends. The
headline S&P 500, which is frequently referred to in financial media, is a price returnindex. There is a related index called the S&P 500 Total Return, which calculates what
the performance would be if dividends paid by index constituents on the ex-dividend
date of each index share were reinvested. Total return indices, therefore, representchanges in market capitalization plus reinvested dividends. Finally, dividend points
indices track dividend payments in isolation, reflecting the periodic cumulative dividendsof all index shares. They do not include any changes in market capitalization.
One can think of the different types of indices as representing different investment
strategies. Some investors elect to reinvest dividends in the stocks they hold, and thisstrategy could be benchmarked with the S&P 500 Total Return. On the other hand,some investors hold stocks but do not reinvest dividends—electing instead to takedividends in cash as a source of income. This strategy could be benchmarked with a
combination of the S&P 500 Price Return and a S&P 500 Dividend Points Index.
4. Why is there a dividend points index? By offering an index that represents dividend
payments of S&P 500 members, S&P DJI allows investors to track an importantcomponent of equity returns—independently of equity price changes. The index canalso be used as a basis for financial products.
5. Can I invest in dividend points? No, not directly. Like other indices, it is not possible
to invest directly in dividend points. However, there are often financial products thattrack particular indices, and one can invest in these products. Examples include ETFs,
index mutual funds and index futures. In the case of the S&P 500 Dividend Points
Index, there are futures contracts listed on the Chicago Mercantile Exchange (CME).
6. How many S&P 500 Dividend Points Indices are there? There are two indices: onethat resets quarterly—the S&P 500 Dividend Points Index (Quarterly)—and one that
resets annually—the S&P 500 Dividend Points Index (Annual).
7. Why are the indices periodically reset to zero? The indices represent cumulative
cash dividends paid over a defined period—either one quarter or one year. At the startof the next period, the indices are reset to zero so that they reflect dividends paid in
discrete periods that coincide with the expiration of S&P 500 futures. Having the indices

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S&P 500 Dividend Points Index

reset when futures expire is useful because this enables them to be used as theunderlying index for financial instruments that are designed to hedge the dividend risk ofindex futures.
Resetting also allows for comparisons of dividend payouts from one period to another.
One can measure changes in dividends from any one period to any other.
8. When do the indices reset to zero? The S&P 500 Dividend Points Index (Quarterly)
resets after the market close on the third Friday of the last month of each calendar
quarter. This coincides with S&P 500 futures expiration. The S&P 500 Dividend Points
Index (Annual) resets only on the third Friday of December.
9. Do the S&P 500 Dividend Points Indices represent indicated dividends or paid
dividends? The indices represent regular cash dividend payments paid by S&P 500
constituents.
10. Are special dividends included in the index? No, only regular cash dividends areincluded.
11. What is the difference between special dividends and ordinary dividends?
Ordinary dividends typically follow a quarterly, semiannual or annual cycle and are mostoften quoted in terms of the payment amount each share receives (i.e., dividend pershare).
Special dividends are defined as those dividends that are outside of the normal
payment pattern established historically by the corporation. Special dividends are
typically larger than ordinary dividends—there are no patterns for these events, andthey may be one-time payments. Special dividends are usually described by thecompany as “special,” “extra,” “irregular,” “return of capital,” “distribution from reserves”
or some other similar term in the dividend announcement.
Please refer to the S&P Dow Jones Indices’ Equity Indices Policies & Practices
Methodology for more detail.
12. Do dividends get counted on the ex-dividend date or pay date? Dividends areadded on the ex-dividend date. This is consistent with the S&P 500 Total Return. Since
stock prices are adjusted for dividends on the ex-dividend date, this method is much
more straightforward than adding dividends on the pay date.
13. How is the index calculated? On each trading day, S&P DJI sums the dividends of allindex shares on the ex-dividend date and divides that figure by the S&P 500 divisor,
which transforms the U.S. dollar amount into index points. Except for the reset day,FAQ

3S&P 500 Dividend Points Indexthese index points are added to the cumulative total for the respective period to derive
the value of the S&P 500 Dividend Points Indices for that day.
For more information on the S&P 500 Dividend Points Indices, please visit
spglobal.com/spdji.

FAQ

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Appendix
Exhibit 1 shows a list of S&P Dow Jones Indices’ Dividend Point Indices. Please refer to the
S&P DJI Methodology & Regulatory Status Database for more detail.
Exhibit 1: S&P DJI’s Dividend Point Indices
Index Name
S&P MLP Dividend Points Index(Cumulative)
Consumer Discretionary SelectSector Dividend Points Index(Cumulative)
Consumer Staples Select Sector
Dividend Points Index(Cumulative)
Energy Select Sector Dividend
Points Index (Cumulative)
Financial Select Sector Dividend
Points Index (Cumulative)
Health Care Select Sector
Dividend Points Index(Cumulative)
Industrial Select Sector Dividend
Points Index (Cumulative)
Materials Select Sector Dividend
Points Index (Cumulative)
Real Estate Select Sector
Dividend Points Index(Cumulative)
S&P 400 Dividend Points Index(Cumulative)
S&P 500 Dividend Points Index(Quarterly)
S&P 500 Dividend Points Index(Annual)S&P 500 Dividend Points Index(Cumulative)
S&P 600 Dividend Points Index(Cumulative)
Technology Select Sector
Dividend Points Index(Cumulative)
Utilities Select Sector Dividend
Points Index (Cumulative)
S&P/ASX 200 Dividend Points
Index (Annual)
S&P/ASX 200 Dividend Points
Index (Quarterly)
S&P/TSX 60 Dividend Points
Index
S&P/TSX 60 Dividend Points
Index (Annual)

Methodology
Document
S&P MLP IndicesMethodology

First Value
Date

Index Launch
Date

SPMLPDIV

Dec. 21, 2012

Feb. 21, 2017

S&P U.S. IndicesMethodology

IXYDIV

Dec. 21, 2012

Feb. 21, 2017

S&P U.S. IndicesMethodology

IXRDIV

Dec. 21, 2012

Feb. 21, 2017

IXEDIV

Dec. 21, 2012

Feb. 21, 2017

IXMDIV

Dec. 21, 2012

Feb. 21, 2017

IXVDIV

Dec. 21, 2012

Feb. 21, 2017

IXIDIV

Dec. 21, 2012

Feb. 21, 2017

IXBDIV

Dec. 21, 2012

Feb. 21, 2017

IXREDIV

Dec. 21, 2012

Feb. 21, 2017

400DIV

Dec. 21, 2012

Feb. 21, 2017

S&P U.S. IndicesMethodology
S&P U.S. IndicesMethodology
S&P U.S. IndicesMethodology
S&P U.S. IndicesMethodology
S&P U.S. IndicesMethodology
S&P U.S. IndicesMethodology
S&P U.S. IndicesMethodology
S&P U.S. IndicesMethodology
S&P U.S. IndicesMethodology
S&P U.S. IndicesMethodology
S&P U.S. IndicesMethodology
S&P U.S. IndicesMethodology
S&P U.S. IndicesMethodology
S&P/ASX Australian
Indices Methodology
S&P/ASX Australian
Indices Methodology
S&P/TSX Canadian
Indices Methodology
S&P/TSX Canadian
Indices Methodology

Index Code

Ticker

SPXDIVSPXDIV

March 19, 1990

June 16, 2009

SPXDIVAN

SPXDIVAN

Dec. 29, 1989

Dec. 20, 2002

500DIV

Dec. 21, 2012

March 8, 2017

600DIV

Dec. 21,Feb. 21, 2017

IXTDIV

Dec. 21, 2012

Feb. 21, 2017

IXUDIV

Dec. 21, 2012

Feb. 21, 2017

SPASDIVASPASDIVA

March 31, 2000

April 8, 2019

SPASDIVSPASDIV

March 31, 2000

April 8, 2019

TXDP

TXDP

Dec. 21, 2017

July 17, 2017

TXDPA

TXDPA

Dec. 21, 2017

July 17, 2017

Source: S&P Dow Jones Indices LLC. Data as of Nov. 30, 2023. Table is provided for illustrative purposes.

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