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Nikkei 225 Dividend Index Futures

About Nikkei 225 Dividend Index Futures

Nikkei 225 Dividend Index Futures are Index Futures of the Nikkei Stock Average Dividend Point Index.

The Nikkei Stock Average Dividend Point Index

The index is calculated by substituting the received dividends of the constituents into the formula of the Nikkei 225. After adjusting the each dividend by the presumed par value, the adjusted value shall be divided by the divisor on its ex-dividend date and accumulated. The index value is expressed with two decimal places in Japanese yen. The index is calculated by Nikkei, Inc.

Hedge for a fluctuation risk of dividend amount from stocks portfolio

A fluctuation risk of dividend amount exists until fixing of dividend amount even it is assumed two million JPY as dividend when people holding a hundred million JPY of stock portfolio. It is available to hedge its risk by using dividend Index Futures.

Investment to dividend without buying and holding stocks

Buying dividend index Futures provides the availability to invest dividend directly without buying stocks and concerning profit and loss caused by stock price fluctuation.

An indicator for the dividend yield which market expects

The price of dividend index Futures can be an indicator of the level of dividend yield which market expects. For example, market expects 2% dividend yield when Nikkei 225 equals to JPY 10,000 and the Nikkei Stock Average Dividend Point Index equals to JPY 200.

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