The CNX Dividend Opportunities Index is designed to provide exposure to high
yielding companies listed on NSE while meeting stability and tradability
requirements. The CNX Dividend Opportunities Index comprises of 50 companies.
The methodology employs a yield driven selection criteria that aims to maximize
yield while providing stability and tradability. Currently the index comprises
of companies from 26 different sectors.
The index is calculated using free float market capitalization methodology with
a base date of October 1, 2007 indexed to a base value of 1000. At the time of
rebalancing of shares/ change in index constituents/ change in investable weight
factors (IWFs), the weightage of the index constituent (where applicable) is
capped at 8%. Weightage of such stock may increase up to a maximum of 10%
between the rebalancing periods
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CNX Dividend Opportunities Index represents about 19.34% of
the free float market capitalization of the stocks listed on NSE as on December
30, 2011.
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The total traded value for the last six months of all Index constituents is approximately
11.97% of the traded
value of all stocks on NSE as on December 30, 2011.
- Companies must rank within the top 300 by average free-float market
capitalization and aggregate turnover for the last six months.
- Companies should have a positive net worth as per latest annual audited
results.
- Companies must have reported net profit as per latest annual audited
results.
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Top 50 companies ranked by annual dividend yield will form
part of the index.
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In order to reduce the turnover of constituents that form
part of the index, a buffer of 100% of total number of index constituents shall
be applied at the time of each review. This means that if the existing
constituent at the time of the review ranks within the top 100, the same can be
retained in the index.