ADX launches new dividend index to widen investor options

Abu Dhabi Securities Exchange (ADX) has introduced the FTSE ADX Dividend Stars Index, a new benchmark designed to give investors access to listed companies with strong records of dividend payments.

The exchange said the index, now live, is the first of its kind in the region and forms part of its wider strategy to expand investment tools across Abu Dhabi’s capital market.

The index launches with 17 constituents drawn from major sectors including energy, industrials, financials, communications, consumer discretionary, consumer staples and basic materials. The exchange said the group represents more than 70 per cent of all dividends paid by companies listed on the exchange in 2025.

Combined net profits across the constituents rose 20 per cent in the first nine months of 2025 compared with the same period a year earlier, reflecting the strong fundamentals of the companies included.

ADX launches regional dividend-focused index

The FTSE ADX Dividend Stars Index is the seventeenth index in the FTSE ADX series and the fifth developed through the exchange’s partnership with FTSE Russell. The exchange said the new product complements other thematic benchmarks such as the FTSE ADX ESG Screened and FTSE ADX 15 Islamic indices, offering investors a broader range of tools for diversification and performance comparison.

Abdulla Salem Alnuaimi, Group Chief Executive Officer of ADX Group, said the new benchmark would support liquidity and increase visibility for issuers. “The FTSE ADX Dividend Stars Index opens a new avenue for investors seeking stable and growing income, backed by Abu Dhabi’s solid and resilient capital market,” he said. “This innovative index strengthens investor confidence and supports our role in attracting capital and enabling company expansion.”

Gerald Toledano, Global Head of Equities and Multi Assets at FTSE Russell, said the collaboration with ADX is helping expand access to transparent and rules-based benchmarks. “The new FTSE ADX Dividend Stars Index provides a robust framework for tracking higher dividend performance,” he said.

The exchange noted that over the past five years, listed companies have paid out more than AED320 billion in cash dividends, representing a compound annual growth rate of almost 33 per cent. Market capitalisation on the exchange has more than doubled in the same period, with ADX outperforming the FTSE Emerging Markets Index.

The new index uses the FTSE Target Diversification method, which aims to manage concentration levels and provide balance while maintaining exposure to companies with strong dividend profiles. The exchange said the approach is designed to reduce volatility and help investors access steady income from high-dividend stocks.