The Nikkei 225 Total Return Index measures the performance of the Nikkei 225 that includes both movements in the index level and reinvestment of dividend incomes from its component stocks.
The Nikkei 225 Total Return Index is calculated on the Nikkei Stock Average (Nikkei 225). The Nikkei 225 is comprised of 225 stocks selected from domestic common stocks in the 1st section of the Tokyo Stock Exchange, which is used around the globe as the premier index of Japanese stocks.
Index value on a day is calculated by multiplying the index value on the previous day by the daily return of the value including the dividend. It is common for Japanese companies to fix the amount of dividends paying to their shareholders after the ex-dates, which means Japanese companies do not fix the dividends on the ex-date. Therefore estimated dividends are used for the index calculation on the ex-date. The difference between the estimated dividend and the actual dividend reflects the index on the next business day when the dividend is fixed. The timing to fix the dividends is the same as that for the calculation of the “Nikkei Stock Average DP Index” (i.e. on the dates of annual regular shareholder meetings in case of the annual dividends/ on the dates of the publication by the companies in case of the other dividends). The estimated dividend figures published by Nikkei are used for the calculation.
The index was first published on December 3, 2012. The inception value was 6569.47 points on December 28, 1979 (base date; the value identical to the Nikkei 225 closing on the day). The index has been calculated and published on the end-of-day basis.