How is the S&P/ASX 200 Index essential in determining high dividend yielding stocks?

Whenever it comes to investing, the stock market seems the top-notch alternative for every investor.  While it sounds riskier to many, careful analysis can help yield the high profits. Although almost all the countries have their own stock exchange, the Australian Securities Exchange is considered the ‘Heart of the Stock Markets’. In fact, according to a resource, the Australian Stock Exchange is one of the leading stock exchanges worldwide.

 If you are a beginner and want to become a market pro player, knowing about the ASX 200 Index is the best way to initiate with. Read further to learn more about the S&P/ASX 200 Index in detail.

 

Before moving forward, let’s understand a bit about the Australian Securities Exchange.

 

What is Australian Securities Exchange or ASX?

The Australian Securities Exchange Ltd. (ASX) is an Australian public company that operates the country's primary securities exchange. It was incorporated in 1987 after the amalgamation of six state-based stock exchanges. 

 

It offers a wide range of products to market participants including equity, bonds, hybrids, ETFs, ETPs, managed funds, warrants, index derivatives, grain derivatives, energy derivatives and interest rate derivatives.

 

What is the S&P/ASX 200 Index?

 

The S&P/ASX 200 Index, designed by Australian Securities Exchange, is a standard to measure the performance of the 200 largest index- eligible stocks listed on the ASX by float-adjusted market capitalization.

 

Investors are more interested in knowing the performance of the top 200 companies because most of them are generally blue chips and are less prone to volatility. Also, they are majorly traded stocks and considered as the household name with an excellent track.

 

Why is ASX 200 essential for the stock market?

The Australian Securities Exchange or ASX 200 can be considered as the essence of the Australian Stock Market due to the following reasons:

1. Though the ASX 200 index doesn’t reveal the whole story but offers a significant solid approximation that not only provides internal insights but helps investors make a bold decision regarding investments.
2. The ASX 200 also serves as the ‘gold standard’ of the Australian Stock Market. Its careful consideration can help investors to invest in high dividend yielding stocks by comparing the performance of an individual stock & even an entire portfolio.
3. Finally, the Australian Securities Exchange helps achieve a diversified portfolio with a broad room of liquid shares, regularly traded and representing major Australian listed companies.

 

Final Words:

If you have reached here, it means you’ve understood the concept of ASX 200 and how it is important in analyzing the high dividend yielding stocks. Now, it's time to invest in the best ASX companies. Stay in touch to learn more about the Australian Securities Exchange.