BSE 500 Dividend Leaders 50 stocks list

The index starts from BSE 500 companies, and each must have been listed for at least 5 years. At each annual rebalancing a company must also have declared a dividend in at least 80% of the past 10 years, or of the years since listing if that is fewer. Its 3-year average dividend yield (the yearly dividend per share divided by the price, averaged over three years) must not fall in the bottom quartile of the eligible companies.

Eligible companies are ranked by a normalized Z score. The top 30 are included directly. Current members ranked 31 to 70 are then added in order of rank until there are 50 companies. If the count is still short, non-members are added in order of rank.

Two further checks apply to the portfolio: at least 85% of the companies must have paid dividends in 2 of the previous 3 years, and at least 85% must have a dividend rate of at least 10%. If either check fails, the next eligible company by rank, preferring one that meets the requirement, is selected.

Weights are the product of free-float market cap (the value of the shares available to trade) and the normalized Z score, with no company above 4%. The caps are applied annually, effective at the open of the Monday after the third Friday of Dec, and at each ad-hoc rebalancing.

The Z score is built from two Z scores, one on the latest dividend yield and one on the 3-year average dividend yield. Each measures how far a company's figure sits from the mean of the index universe, in standard deviations. The two are averaged, and averages above 3 or below -3 are set to 3 or -3. A positive average Z gives a normalized score of 1 plus Z, a negative one gives 1 divided by (1 minus Z), and zero gives 1.

The index is rebalanced annually in Dec. Index shares are set from closing prices on the Wednesday before the second Friday of that month. Any addition or deletion triggers an ad-hoc rebalancing that reweighs every company, using closing prices seven business days before the rebalancing date. A company dropped after a corporate action is replaced by the most eligible non-member to keep the count at 50.

Companies added to the Graded Surveillance Measure list are dropped monthly, and must stay off the list for six consecutive months before they can be reconsidered. The index is also checked each quarter against four SEBI portfolio concentration norms.

The index was launched on 9 May 2025, and its history runs from a first value date of 21 Dec 2015.