Nifty Dividend Opportunities 50

Nifty Dividend Opportunities 50

The goal of the Nifty Dividend Opportunities 50 Index is to expose investors to high-yielding businesses. This index employs a yield-driven selection criteria aiming to maximize yield while ensuring stability and tradability.

Composition and Methodology 

The index comprises 50 companies traded on the National Stock Exchange (NSE). It is calculated using the free-float market capitalization methodology, with a base date of October 1, 2007, and a base value of 1000. During rebalancing or changes in index constituents, the weightage of any index constituent is capped at 10%, although it may increase beyond this limit between rebalancing periods.

Eligible Securities 

All equity shares traded on the NSE are eligible for inclusion in the Nifty indices, except for convertible stock, bonds, warrants, rights, preferred stock that provide a guaranteed fixed return, and stocks under the BZ series.

Stock Selection Criteria and Calculation

Eligibility Criteria

• Market Capitalisation and Turnover: Companies must rank within the top 300 by average free-float market capitalization and average daily turnover for the last six months.
• Trading Frequency: In the last six months, companies must have a trading capacity of at least 90 %.
• Listing History: Companies must have a listing history of at least one year.
• Corporate Events: Companies which have to undergo corporate events which includes spin-offs or capital restructuring. They are eligible if they have completed three months of trading post-event and meet all other criteria.
• Profitability: Companies must have reported a net profit as per the latest annual audited results.
• Dividend Yield: A company’s dividend yield is calculated using the total dividend amount from the last 12 months and the average market capitalization for the one-year period ending in January.

Selection Process

• The top 25 companies ranked by annual dividend yield are compulsorily included in the index.
• Businesses that have an annual dividend yield of less than 75 are not included in the index.