ADX Launches FTSE ADX Dividend Stars Index To Highlight High-Yield Investment Opportunities

The Abu Dhabi Securities Exchange (ADX) Group has launched the FTSE ADX Dividend Stars Index, a pioneering initiative in the region. This index offers investors access to income-generating equities within Abu Dhabi's dynamic capital market. It begins with 17 companies that showcase the emirate's diverse economy and strong dividend performance, highlighting Abu Dhabi's expanding economic influence.

Over the past five years, ADX investors have benefited from over 320 billion dirhams in cash dividends, with a compound annual growth rate of nearly 33%. During this period, ADX has more than doubled its market capitalization and outperformed the FTSE Emerging Markets Index, demonstrating consistent growth and robust fundamentals.

This new index is part of the FTSE ADX series and is the fifth headline index under the FTSE Russell partnership. It covers various sectors such as communication services, industrials, energy, financials, consumer discretionary, consumer staples, and basic materials. The launch underscores ADX's commitment to enhancing market depth and providing diverse investment tools.

The FTSE Target Diversification method used by this index introduces an innovative approach to manage diversification and concentration. This method allows for flexible stock concentration adjustments, ensuring quality and balance while reducing volatility. Investors benefit from steady income through high dividend-paying stocks.

Abdulla Salem Alnuaimi, Group CEO of ADX Group, stated: "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. With a transparent, data-driven benchmark that tracks companies with strong dividend profiles, the index enhances liquidity, elevates issuer visibility, and strengthens investor confidence in our strong and dynamic capital market."

The index complements existing thematic benchmarks like the FTSE ADX ESG Screened and FTSE ADX 15 Islamic indices. These indices offer diversification and performance benchmarking across various investment themes. The introduction of this new index further emphasizes ADX's role in attracting capital and supporting company growth.

Strengthening Investor Confidence

Gerald Toledano from FTSE Russell remarked: "Our partnership with ADX continues to expand investor access to transparent, rules-based benchmarks that reflect the region’s growth and maturity. The new FTSE ADX Dividend Stars Index provides a robust framework for tracking higher dividend performance." This collaboration supports both income-seeking investors and Abu Dhabi’s vibrant capital market.

The constituents of this index accounted for over 70% of total dividend payouts on the ADX in 2025. Their combined net profit for the first three quarters of 2025 increased by 20% compared to 2024. This highlights their solid financial performance and resilience.

The launch of this innovative index reinforces ADX's pivotal role in Abu Dhabi’s economic development by attracting capital and empowering investors to engage in the emirate’s ongoing success.

With inputs from WAM