PSX to launch dividend index for investors

New index to benefit income-seeking investors

KARACHI: The Pakistan Stock Exchange (PSX) has launched its first dividend based fundamental index, PSX Dividend 20 Index, as a major step towards facilitating investors, stakeholders and market participants.    

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, a statement released by the exchange said on Tuesday. 

PSX Dividend 20 Index is comprised of the following:

  1. Allied Bank Ltd.
  2. Attock Petroleum Ltd.
  3. Bank Alfalah Ltd.
  4. Bank Al-Habib Ltd.
  5. Engro Corporation Ltd.
  6. Engro Fertilizers Ltd.
  7. Engro Polymer & Chemicals Ltd.
  8. Engro Powergen Qadirpur Ltd.
  9. Fatima Fertilizer Co Ltd.
  10. Fauji Fertilizer Co. Ltd.
  11. Habib Bank Ltd.
  12. Habib Metropolitan Bank Ltd.
  13. Indus Motor Company Ltd.
  14. International Steels Ltd.
  15. Kot Addu Power Company Ltd.
  16. MCB Bank Ltd.
  17. Nishat (Chunia) Ltd.
  18. Pakistan Oilfields Ltd.
  19. Tariq Glass Industries Ltd
  20. United Bank Ltd.

Speaking at the launch ceremony, Managing Director and CEO of PSX, Farrukh H. Khan said PSX was consistently innovating and launching new products and offerings to enhance the investor and market participant experience.

The new index is the 14th equity index in Pakistan’s stock market that facilitates market participants in utilising these indices to evaluate their investment portfolios.                                                           

By identifying high dividend yielding companies, the index will be particularly helpful for investors in the current economic conditions.

Chief Product Officer and Regional Head of PSX, Hassan Raza, said the addition of the PSX Dividend 20 index will 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 informed.

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