Asia Index to change methodology for dividend stability index

Leading indices provider Asia Index today said it will change the methodology for S&P BSE Dividend Stability index from September.
The index is designed to measure the performance of companies on S&P BSE LargeCap, a size sub-index of the S&P BSE AllCap, that have followed a policy of increasing or stable dividend income for at least seven out of nine years.
As per the proposed revision to the methodology, the index would employ a modified market capitalisation-weighting scheme as against the current practice of a float market capitalisation-weighting scheme.
Besides, every company in the index would be weighted by dividend yield. Presently, the companies are weighted based on its float market capitalisation.

The changes to the methodology for S&P BSE Dividend Stability index would be effective with the September 2016 rebalance, Asia Index said in a statement.
Asia Index is joint venture between S&P Dow Jones Indices and BSE.
The company is best known for calculating, publishing and maintaining a diverse family of Asian indices under the umbrella brand, S&P BSE Indices.