NYSE Euronext has launched two new dividend indices, the CAC 40 Dividend Index and the AEX Dividend Index. Reportedly, they measure the cumulative value of ordinary gross dividends declared and paid by the constituents of the CAC 40 and the AEX indices, respectively. The value of the two dividend indices is expressed in terms of index points. Each year, on the third Friday in December after the close of business, the indices are reset at zero.
NYSE has said that these new indices are designed to serve as an underlying for futures contracts, providing investors with an extra way to manage the risk inherent in the dividend distribution by index constituents.
George Patterson, head of global index design, global index group, NYSE Euronext, said: We are very pleased to extend our product range by adding the CAC 40 and AEX Dividend Indices, providing investors with new opportunities to participate in dividend returns of our French and Dutch blue chips.
