I’m looking at the AMZ Values Spreadsheet. When will the yield reflect distribution increases?
The AMZ yield is calculated on an indicative basis. This means that as soon as an MLP announces board approval of a distribution payment, it is taken into account in our calculations.
The formula for the yield column is Total Index Distribution (TD) divided by Adjusted Market Cap (AMC).
Single Equity Distributions are calculated by taking the latest announced distribution for each equity, multiplying it by four to annualize (or 12 if the MLP pays a monthly distribution), then multiplying this number by both units outstanding and float. The individual results of each of these equations are then summed for all 50 equities, reflecting the Total Index Distribution.
To find each company’s Adjusted Market Cap, take the MLP’s current price and multiply it by both units outstanding and float. The individual results of each of these equations are then summed for all 50 equities to provide the Adjusted Market Cap for the entire index.
Keep in mind, the Total Index Distribution only changes when companies announce a distribution, while the Adjusted Market Cap changes each day.
Please visit our AMZ Index Page for more details on the AMZ and its related methodology.
