PSX launches first dividend-based index to facilitate investors

KARACHI: Pakistan Stock Exchange (PSX) has launched its first dividend-based index, designed to track performance of top 20 dividend paying companies at PSX, to facilitate investors, stakeholders, and market participants.

The companies would be ranked and weighted based on their trailing 12-month dividend yield.

Allied Bank, Attock Petroleum, Bank Al-Falah, Bank Al-Habib, Engro Corporation, Fauji Fertilizer Co., Indus Motor Company, and MCB Bank Ltd. are included in the current list of top twenties.

“PSX is consistently innovating and launching new products and offerings to enhance the investor and market participant experience,” said PSX managing director and CEO Farrukh H. Khan at the launch ceremony held on Tuesday.

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

PSX regional head and chief product officer Hassan Raza said addition of the index would serve as a valuable tool for market participants as it’s 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.” Listing of the companies will be changed on every six months looking at last 12-month performance of the firms.

Other entities in the current list include Engro Fertilizers, Engro Polymer & Chemicals, Engro Powergen Qadirpur, Fatima Fertilizer Co., Habib Bank, Habib Metropolitan Bank, International Steels, Kot Addu Power Company, Nishat (Chunia), Pakistan Oilfields, Tariq Glass Industries, and United Bank Ltd.