Dividends are an important component of the total return on equities. The S&P CNX Nifty Dividend index is designed to track the total dividend from the constituents of the S&P CNX Nifty index. The value of the dividend index is expressed in terms of index points. It enables the investor to take a view on dividends for S&P CNX Nifty securities independent of the price movement.

Currently there are various derivative contracts available using S&P CNX Nifty index as the underlying, which have dividend risk implied in them. The S&P CNX Nifty dividend index strips the dividend cash flow of the S&P CNX Nifty index and provides investors with the ability to hedge against the dividend risk that implicit in the value of the S&P CNX Nifty index derivatives.

The S&P CNX Nifty Dividend Index is a running total of dividend points of the securities forming part of S&P CNX Nifty Index. It is worth noting that the S&P CNX Nifty Dividend Index is a passive representation of annual index dividend points. It is not an active index of stocks representing a quantitative dividend based investment strategy.

The index measures the total ordinary dividends paid in the securities forming part of the underlying index since the previous rebalancing date. Index dividend points of S&P CNX Nifty Index are dividends paid by index constituents expressed in terms of the level of S&P CNX Nifty Index. The S&P CNX Nifty Dividend Index resets to zero every year after the close of the settlement of exchange traded derivative contracts linked to S&P CNX Nifty Index in the month of March every year (normally the last Thursday in March). It is done to coincide with the expiry of exchange traded derivative contracts linked to S&P CNX Nifty Index for the month.

The formula for calculating the dividend index on any date (t) for the S&P CNX Nifty Index is:

Dividend Index (t) = Previous Dividend Index Value (t-1) + Indexed Dividend (t day)

The index dividend of the S&P CNX Nifty Index is calculated by taking the summation of dividend payout (adjusted for free float ) specified by index constituents divided by the index divisor on ex-dividend date.

Daily Values