Return Index as paid – Datatype (RZ)

The return index as paid datatype uses the dividend payment data calculation method irrespective of whether the dividend history contains a mixture of gross and net dividends and may be used as an alternative to RI which uses the annualized dividend yield method in such cases.

RZ is called ‘as paid’ to reflect the dividends as received by the holder. For example, in Australia, the tax policy requires that some dividends are on a net basis and some on a gross basis.

For markets where the dividend payments are only on a gross basis, the RZ returns an identical value to RI.

For UK securities the RZ includes a tax credit on the dividend until it was abolished in April 2004. Prior to that time dividends as announced by the company are grossed up to include to the credit in the RZ calculation. The rate used varies over time, the last rate being 10% in the period April 1999 to April 2004. To see a return index measure which does not include tax credits, the datatype RN (Return Index – Net) should be used. The RN calculation is the same as RZ except the dividends used are as announced by the company and not grossed up for the tax credits. It follows that since April 2004 the performance of RI, RZ and RN for UK securities is the same. RN is available for UK companies only.