In a first, PSX launches dividend-based index

• The index is designed to track performance of top 20 dividend-paying companies at PSX.
• PSX Dividend 20 index is the 14th equity index in Pakistan’s stock market.
• This will enable market participants to select stocks of liquid companies in their portfolios.

KARACHI: The Pakistan Stock Exchange (PSX) Tuesday launched its first fundamental index — PSX Dividend 20 Index as a step forward toward facilitating investors, stakeholders, and market participants.

In the statement released in this regard, the PSX management stated that this index is designed to track the performance of the top 20 dividend-paying companies at PSX whereby the companies are ranked and weighted based on their trailing 12-month dividend yield.

Speaking on the launch of the index, CEO and Managing Director Farrukh H Khan said: “The PSX is consistently innovating and launching new products and offerings to enhance the investor and market participant experience.

“The PSX Dividend 20 index is the 14th equity index in Pakistan’s stock market facilitating market participants in utilising these indices to evaluate their investment portfolios.”

He further added that by identifying high dividend yielding companies, the PSX management believes that “this index will be particularly helpful for investors in the current economic conditions”.

Chief Product Officer and Regional Head PSX Hassan Raza stated that the addition of the PSX Dividend 20 Index would serve as a valuable tool for market participants as it is designed to screen companies based on their cash dividend payouts.

“This will enable market participants to select stocks of liquid companies in their portfolios which have the highest trailing 12-month dividend yield,” he elaborated.