NSE Indices launches Nifty High Dividend Yield 15 Index to track a high-dividend strategy
Amid growing demand for passive investment products and income-focused strategies in India, NSE Indices Limited has introduced the Nifty High Dividend Yield 15 Index. The index tracks the performance of 15 companies selected from the Nifty Total Market based on dividend yield and is expected to serve as a benchmark for ETFs, index funds and structured products.
Highlights
- NSE Indices Limited launched the Nifty High Dividend Yield 15 Index with a base date of 1 April 2005 and a base value of 1000.
- The index will track the performance of the top 15 companies within the Nifty Total Market based on dividend yield scores, with a maximum weight limit of 10% per stock.
- The new index will serve as a benchmark for passive investment vehicles such as ETFs, index funds and structured products, and could expand the range of thematic index products.
This article was translated from the original. Read the original version by our correspondent here.
Index composition and rebalancing plan
As reported by NSE India, NSE Indices Limited, the index services arm of the National Stock Exchange of India, has launched the new Nifty High Dividend Yield 15 strategy index. It aims to track the performance of the top 15 companies within the Nifty Total Market selected based on their dividend yield scores.Each stock's dividend yield is calculated by dividing its rolling dividends over the previous 12 months by its market capitalization. Stock weightings in the index are based on a combination of dividend yield score and free-float market capitalization, while the maximum weight of any single stock is capped at 10%.
The index has a base date of 1 April 2005 and a base value of 1000. It is reconstituted and rebalanced semi-annually in June and December each year.
Potential impact on asset managers and passive funds
The new index is expected to serve as a benchmark for asset managers, particularly for investment strategies focused on regular income and high-dividend stocks. It could support the development of products in the market targeting yield-oriented investors.This move by NSE Indices also provides a reference index for passive investment vehicles such as ETFs, index funds and structured products. It could further expand the range of thematic and strategy-based index products in India's capital market.
Our previous report covered the rebalancing and constituent changes being made by NSE Indices Limited to several Nifty fixed-income, target-maturity and corporate bond indices, which were set to take effect from 30 September 2026. It noted that certain securities were being removed and new ones added to keep duration, credit profiles and maturity structures aligned with their objectives, potentially affecting index-based products and institutional investors.
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