Since the beginning of this year, the A-share market has been weak, and it is also grinding the bottom repeatedly near the end of the year, and many people have begun to "look forward" and plan for next year's investment. Although it is the courage of the retrograde to buy in the "no one cares", what to buy is more stable in the market grinding stage, and how to embrace certainty in the uncertainty is also worth thinking about.
Wind data shows that as of December 25, 2023, the Shanghai Composite Index has been **552%, CSI 300**1354%，The CSI Dividend Index has shown good defensive ability in the **market, contrarian**0.51%, outperforming many mainstream broad-based indices. From a longer perspective, the performance of CSI Dividend in the past five years has also been very outstanding, with an index return of 28 in the past five years03%, indicating that dividend assets are not inferior in the general rise, and they are particularly eye-catching in the market.
Data**: Wind, as of 2023-12-25.
Why does the dividend strategy have the effect of resisting risks in the ** market?
A simple truth, the income of investment includes capital gains and dividend income brought by stock price, but capital gains are often uncertain and unavoidable, but dividend income is reliable and relatively certain. Therefore, the dividend strategy has a certain resistance in the ** market.
Data**: Wind, as of 2022-09-06. Historical performance of the Index is not indicative of the future and does not constitute a guarantee of future performance.
Why have dividend assets performed better this year?
Mainly benefiting from the macro environment of the decline in the interest rate of government bonds, the decline in the interest rate of domestic bonds makes the dividend style relatively more cost-effective. At the same time, the macro fundamentals are weak, the market's anti-risk sentiment is high, and in order to "defend", the dividend strategy is also favored by investors.
Do you think the bonus is just a fall-resistant?
But it doesn't stop there. Throughout history, after 2012, the dividend style crossed the bull and bear, and the dividend did not necessarily play its value when the market was bad, and it was still possible to outperform the market in the bull market. Therefore, the dividend strategy crosses the bull and bear, and in the bull market, you can earn both the money of the stock price and the dividend income, and the dividend income can also be earned without the market in the market, which is a relatively independent long-term strategy.
Data**: wind, the statistical period is from 2004-12-31 to 2023-12-25. Past performance is not indicative of future performance and does not constitute a guarantee of future performance.
So can you continue to allocate bonus assets in the coming year?To solve this problem, we must start with the long-term growth momentum of dividend assets.
The long-term growth momentum of dividend assets comes from the high-quality development and low-slope recovery of domestic economic fundamentals, and the arrival of the era of low interest rates. The former will bring up the premium of bonus assets, while the latter will make the relative attractiveness of bonus assets advantageous.
On the one hand, the current 10-year Treasury yield is 257% and toThe dividend yield of dividend assets represented by the CSI Dividend Index is 624 %, which is at an all-time high. Therefore, in the context of low interest rates, the logic of asset shortage is becoming more and more strengthened, and bank wealth management, insurance asset management, pension investment, etc. have allocated dividend assets in order to increase returns.
Data**: wind, the statistical period is from 2004-12-31 to 2023-12-25.
On the other hand, since the proposal of the "China Special Valuation", state-owned enterprises are expected to further increase dividends and dividends to improve ROE, under the guidance of policiesThe dividend ratio of listed companies is expected to further increase. At the same time, from the point of view of valuation,The CSI Dividend Index PE (TTM) is 585% and at 6 in history78% low, PB is only 065%, the valuation is cost-effective.
Looking forward to the coming year, from the perspective of asset allocation, the allocation of dividend strategies with high dividends and low valuations is expected to benefit from the gradual repair of fundamentals and changes in expectations, as the "defensive side" of the portfolio.
Tips: What is a bonus strategy?
The dividend strategy refers to the stock selection strategy that takes the dividend yield as the core stock selection index and selects listed companies with stable cash flow, long-term continuous cash dividends and high dividend ratio as investment targets. For example, industries with high dividends and low valuations such as coal, banking, and steel all belong to the dividend style.
Layout bonus assets can be selected——The dividend index of the largest market in the whole market and the better performance this year has increased!
Wells Fargo CSI Dividend Index Enhanced** (Class A: 100032, Class C 008682).Founded on November 20, 2008, **Periodic report shows that as of September 30, 2023,The scale is up to 928.2 billion yuan, the net value growth rate of class A share in the past year is 954%, compared to 560%, while the net worth growth rate since its inception is 34298%, and the benchmark for the same period was 16593%，Excess return 17705%。
At the same time,In the past 13 years, the Wells Fargo CSI Dividend Index Enhanced A has outperformed the performance benchmark in each year, the excess return is outstanding. Taking 2016 as an example, under the **large fluctuations, the performance benchmark **655%, and the CSI Dividend Index performed -7 in the same period64%, while the ** fell only slightly by 059 , excellent performance. And in 2017, ** performed outstandingly, with a yield of 2329%, compared with the excess return of the CSI Dividend Index of 572%。
Data**: There are 3 index products that also track the CSI Dividend Index, as of 2023-09-30. **Performance, performance benchmark** is reported on a regular basis, as of December 31, 2022, ** historical performance is not indicative of the future and does not constitute a guarantee of future performance. Wells Fargo CSI Dividend Index Enhanced A was established on November 20, 2008, and the net value growth rate from 2010 to 2022 is compared with the performance benchmark (CSI Dividend Index yield * 90% + one-year bank savings deposit interest rate (after tax) * 10%) The yield is respectively. 31% (4.60%)。Data from ** periodic report, as of December 31, 2022.
Okay, that's it for today's class representative's homework, will you allocate bonus assets?
Investment is risky, ** investment should be cautious.
Before investing, investors are requested to carefully read the "** Contract", "Prospectus" and other legal documents. **Equity may be lower than the initial face value and losses may occur. The Manager undertakes to manage and use the assets in a manner of honesty and trustworthiness, diligence and responsibility, but does not guarantee a certain profit or a minimum return. Past performance and its net worth are not indicative of future performance. The performance of other ** does not constitute a guarantee of the performance of this **.
The above information is for reference only, if you need to purchase relevant products, please pay attention to the relevant regulations on investor suitability management, do a good job of risk assessment in advance, and purchase ** products with matching risk levels according to your own risk tolerance.