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1. What is Dividend?
Dividend is the payment made by corporation to its shareholder members. It is the portion of
corporate profits paid out to stock hoders.
8. What are special dividends? Will the CNX Nifty Dividend Index track stock or special dividends?
The special dividends are the payment made by a company to its shareholders that are separate from
the routine normal dividend declared by the company. Usually given in cash, these dividends are a
one‐off payment distributed on account of very strong earnings or some major achievement by the
company. The special dividends, if required, are adjusted in the CNX Nifty index. The CNX Nifty
Dividend index generally tracks only total ordinary dividends paid by the constituents of CNX Nifty
index since the previous rebalancing date.
9. What is the rebalancing period for the CNX Nifty Dividend Index?
The CNX Nifty Dividend Index resets to zero every year after the close of the settlement of exchange
traded derivative contracts linked to 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 CNX Nifty Index for the month.
In India, corporates pay dividends on annual basis. To synchronize with the payment pattern of Indian
corporates the CNX Nifty Index is rebalance on yearly basis.
The formula for calculating the dividend index on any date, t, for the CNX Nifty dividend Index is:
The indexed dividend of the 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.
The total daily dividend value is calculated as the sum of the dividends per share multiplied by the
index shares for all constituents of the index which have a dividend going ex on that date.
13. Where can I see performance / historical values of CNX Nifty Dividend Index?
The past performance can be found on the Exchange web site at
http://www.nseindia.com/products/content/equities/indices/historical_index_data.htm