KARACHI - Pakistan Stock Exchange 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, says PSX statement on Tuesday. Speaking at the launch of PSX Dividend 20 Index, Managing Director (MD) 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 PSX Dividend 20 index was 14th equity index in Pakistan’s stock market facilitating market participants in utilising these indices to evaluate their investment portfolios. By identifying high dividend yielding companies, we believe that this index would 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 would serve as a valuable tool for market participants as it is designed to screen companies based on their cash dividend payouts.
This would enable market participants to select stocks of liquid companies in their portfolios which have the highest trailing 12 month dividend yield.