Tuesday, 02 January 2024 12:17 GMT

Abu Dhabi Exchange Rolls Out Dividend-Focused Market Index


(MENAFN- The Arabian Post) Arabian Post Staff -Dubai

The Abu Dhabi Securities Exchange Group has launched a new index - the FTSE ADX Dividend Stars Index - aimed at giving investors exposure to companies listed on ADX with strong dividend records. The index, now live, initially comprises 17 constituent companies selected for their consistent dividend performance and diversified operations across multiple sectors of Abu Dhabi's economy.

Those 17 constituents accounted for more than 70 per cent of total dividend payouts by ADX-listed firms in 2025, underscoring the weight of these high-yield companies within the broader market. The firms span sectors including energy, financials, consumer staples and basic materials, giving the index a diversified footprint.

According to ADX Group Chief Executive Officer Abdulla Salem Alnuaimi, the Dividend Stars Index offers a transparent, data-driven benchmark tailored to investors seeking stable and growing income, while enhancing“liquidity, issuer visibility and investor confidence.” The index is part of ADX's strategic push to broaden its investment offerings and deepen market structure.

Support for the launch came from FTSE Russell, part of LSEG, whose Global Head of Equities and Multi Assets, Gerald Toledano, described the new index as a“robust framework for tracking higher dividend performance,” signalling confidence in Abu Dhabi's evolving capital markets.

This is the 17th index under the broader FTSE ADX Index Series, which already includes general, sector-specific, Shariah-compliant and ESG-screened benchmarks. The addition of a dividend-focused index rounds out the exchange's suite of tools for income-oriented and long-term investors.

ADX has doubled its market capitalisation over the last five years and has distributed more than 320 billion dirhams in cash dividends during that period, achieving a compound annual growth rate of around 33 per cent. The launch of Dividend Stars is therefore seen as a strategic step to capture and channel growing investor appetite for stable returns.

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The Arabian Post

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