BSE 500 Dividend Leaders 50: Top Constituents & Sectors by Weightage

The BSE 500 Dividend Leaders 50 Index is a factor-based index that comprises top 50 stocks drawn from the broad-based BSE 500 Index. The factor used to make this selection is the normalised dividend yield score of the stocks.

So only companies who have been consistently distributing dividends are selected for inclusion into this index. The index is reconstituted on an annual basis in December and this is when current index constituents may be replaced by new stocks.

The BSE 500 Dividend Leaders 50 Index selects 50 companies from the list of stocks featured in the BSE 500 Index. Key eligibility criteria that a company needs to fulfill in order to be included into this index include:

• Companies must have completed a listing history of at least 5 years as on the reference date.
• The company should have declared a dividend at least 80% of the time in the last 10 years or from the date of listing, whichever is lower.
• The 3-year average dividend yield should not be in the bottom quartile within the eligible universe.

Beyond qualifying as per the above eligibility criteria, the dividend yield of the stock plays a crucial role in the stock selection process. The formula to calculate dividend yield is this:

Dividend Yield = (Dividend Distributed per share) / (Market Price per Share)

Companies that have a high dividend yield as per the above calculation either are those that have robust cash flows or are companies that are currently undervalued by the stock market. These stocks have the potential to provide significant growth in the long term. For further details about the stock selection methodology used by this index, please check out the BSE official website.

The BSE 500 Dividend Leaders 50 Index comprises 50 companies from the BSE 500 stock universe. Below are top 5 stocks featured on the BSE Dividend Leaders 50 Index based on their weight, as of October 31, 2025:

As you can see, the individual weight of the top stocks is limited to less than 5% of the index. This limited exposure to any single stock helps in diversification of the portfolio. Now, let's take a closer look at the key sectors and their individual weight on the BSE 500 Dividend Leaders 50 Index as of October 31, 2025:

As you can see from above, this index features stocks that belong to a diverse range of sectors and industries. This diversification can limit potential concentration risk for any Exchange Traded Fund (ETF) or index fund that tracks this index.

Based on the returns data available as of October 31, 2025, the returns of the BSE 500 Dividend Leaders 50 Index (TRI) over various time periods are as follows:

As you can see, the 3 year, 5 year, 7 year and 10 year back-tested returns of the index show significant outperformance versus the broader market. While there is no guarantee that this level of performance will be sustained or repeated in the future, it does indicate that staying invested longer in an index fund or ETF tracking this index can potentially generate high returns for the investor.

Currently, you cannot invest directly in the BSE 500 Dividend Leaders 50 Index. But you can gain exposure to the constituents of this index in the following ways: