NIFTY DIV OPPS 50 (NIFTY DIV OPPS 50) live share price today at NSE

Nifty Div Opps 50 Index - A Brief Introduction 

The Nifty Dividend Opportunities 50 Index was launched on 22nd March 2011 by the NSE Indices Limited. It is a strategy index of the National Stock Exchange (NSE), which focuses on tracking the behaviour and performance of high-dividend-yield stocks. 

The Nifty Div Opps 50 Index comprises 50 NSE-listed stocks that offer high and consistent dividend payouts to investors. Through the aggregate value of its 50 constituents, the index allows investors to gauge the overall and collective performance of high-dividend yield stocks in the market. 

Key sectors represented by the Nifty Dividend Opportunity 50 index are Information Technology (29.42%), Financial Services (21.17%), Fast Moving Consumer Goods (17.56%), Oil, Gas & Consumer Goods (10.13%), Power (7.93%), Metal and Mining (6.41%), Automobile and Auto Components (3.72%), and Capital Goods (3.66%).

The NSE Indices Limited, a wholly owned subsidiary of the National Stock Exchange (NSE), is responsible for operating and maintaining the Nifty Div Opps 50 Index. It governs the index through a tier governance structure, which includes the board of directors (BOD) of NSE Indices Limited, the index advisory committee (Equity), and the index maintenance subcommittee. 

• The Nifty Dividend Opportunity 50 Index is a real-time tracker of 50 high-dividend-yield NSE  stocks. 
• It was launched on 2nd March 2011 with a base index value of 1000. 
• The Nifty Div Opps 50 index is managed and owned by NSE Indices Limited.
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Nifty Div Opps 50 Index Stocks - Selection Criteria

1. The company must be domiciled in India and traded at the National Stock Exchange (NSE) to become eligible for inclusion.
2. Companies offering divisional voting rights through listed equity shares are eligible. 
3. The company must rank within the top 300 based on the average free-float market capitalisation and daily turnover.
4. The company must have a listing history of 1 year and a trading frequency of 90% in the last six months. 
5. The companies must report net profit per the latest annual audited results. 
6. The dividend yield of each company must be calculated based on the ex-dividend date using the total dividend amount in the last 12 months.
7. The top 25 companies, per their annual dividend, must be included in the index. 
8. A company that has undergone a corporate scheme action at the time of reconstitution can be included in the index if, as on the cut-off date, the company has completed a three-month trading period after the stocks have traded on an ex basis.

Nifty Div Opps 50 Index - Formula & Calculation

The Nifty Dividend Opportunities 50 Index is calculated using the periodic free-float market cap method. Under the process, the index value reflects the aggregate free-float value of all its constituents, and there is a cap of 10% on each stock within the index. 

Here, free float refers to that portion of a company’s outstanding shares that are freely available for trading in the secondary markets. Using this information, we can calculate the value of the Nifty Div Opps 50 index using the following formula:

Nifty Div Opps 50 Formula = Current Index Market Value / (Base Market Cap * Base Index value )

Here, 

Index Market Value = Shares Outstanding * IWF * Capping Factor * Price 

Base Index Value = 1000 

(Investible Weight Factor) IWF = 1 (as it is based on the market capitalisation)

The Nifty Dividend Opportunity 50 index is also subject to an annual rebalancing, which is implemented from the first working day after the F&O expiry in March. For this rebalancing, the average data for the six months ending January of each year is considered. 

Key Takeaways on Nifty Div Opps 50 Index 

• The Nifty Dividend Opportunity 50 index is a strategy-based index of the National Stock Exchange (NSE). It tracks the performance and behaviour of high-dividend yield stocks listed on the NSE.
• The index comprises 50 NSE-listed equity shares that provide substantial and consistent dividends to investors. 
• The value of the Nifty Div Opps 50 index is calculated based on the periodic free-float market capitalisation method. The constituents of the index also have a 10% weighted cap.