Every time the brand 100 index fluctuates downward, high dividends become the first choice for brea

Mondo Finance Updated on 2024-01-28

This week, the Shanghai Composite Index fell below 3,000 points again, down 205% to 2969Closed at 56 o'clock. The Brand 100 Index also followed suit, with a weekly decline of more than 2%. Under the concerns of de-globalization and decoupling of the first chain, the uncertainty of long-term investment has increased, so a stable annual dividend return may be more suitable for medium and long-term investors who trade more frequently.

There are still positive factors in the market

This week, the Shanghai Composite Index fell below 3,000 points again, and as of December 8**, the Shanghai Composite Index fell 205% to close at 296956 points;The Shenzhen Component Index fell 171% to close at 955392 points;The GEM index fell 1 per week77% at 189218 o'clock;The Brand 100 Index fell 295% to close at 815 points.

Although the market adjusted again, there was still no lack of positive factors to support**, overseas U.S. PMI and employment data verified the downturn, and the U.S. Treasury interest rate fell to 4 on Thursday14%, and the expectation of a rate cut has risen slightly;The domestic Caixin PMI hit a new high in three months, the export growth rate returned to positive, the Guoxin continued to increase its holdings in ETFs, and the flexibility of social security investment increased, all of which boosted market sentiment to a certain extent.

In terms of promoting financial support for the high-quality development of the real economy, on December 4, Yi Huiman, chairman of the China Securities Regulatory Commission, said in an exclusive interview with Xinhua News Agency that more pragmatic measures will be launched around improving the function of the capital market, including "increasing efforts to promote the reform of the investment side and attracting more medium and long-term funds into the market". In August this year, the China Securities Regulatory Commission (CSRC) pointed out that it would "accelerate the formulation of an action plan for the reform of the investment side of the capital market", and the subsequent implementation of the action plan is expected to bring more incremental funds to the capital market to improve the capital environment.

On December 6, ** answered reporters' questions on the current macroeconomic situation, saying that since the beginning of this year, China's economy has overcome difficulties and challenges, withstood downward pressure, and the economic recovery has shown the characteristics of wave-like development and zigzag progress, and the overall economic operation has rebounded for the better, and its contribution to global economic growth will reach one-third this year, which is still the largest engine of global growth. China's economic development is still facing many favorable conditions and supporting factors, including a large space for macroeconomic regulation and control policies.

Some brokerages pointed out that the next two weeks will enter the policy observation stage, and the economic work conference will set the policy direction for next year and bring an important opportunity to rebuild market confidence. In addition, whether the supervision can have more incremental actions in the introduction of medium and long-term funds will also be of great help to the recovery of market confidence. In the short term, the market is in a stage where opportunities and risks coexist, and overall opportunities outweigh risks.

High dividends are the best investment direction for the year

Since the end of last year, the high-dividend strategy has performed well, and the market may have been at a stage bottom. Historical experience shows that high-dividend yield stocks** are often a signal that the market has bottomed out in stages, and there is a transmission law of "bond market**-high-dividend stocks stabilizing**" between stocks and bonds. Since the end of last year, the bond market and high-dividend stocks have successively ** or indicate that the market has been at the bottom of the stage, and the future equity may be a better class of assets.

From the perspective of bull and bear cycles, high dividend strategies have a defensive role in the market. The high-dividend strategy acts as a bear market umbrella by mitigating investment losses caused by stock prices** through dividend reinvestment income in a bear marketAnd in the bull market, the excess return is unstable. From the perspective of the interest rate environment, the high-dividend portfolio in the context of low interest rates is more valuable for investment. Historical review finds that there is a high probability of high dividend stocks during the period of falling interest rates, and ** can last for a period of time.

In addition, with the implementation of the steady growth policy, the economy is expected to recover, and the current fundamentals are continuing to pick up, further confirming the investment value of the equity market. At the same time, in recent years, the construction of the dividend system has paid more attention to enhancing the initiative of corporate dividends, and the volatility of A-share dividends is expected to be reduced, and the high dividend strategy has broad prospects. Learning from the experience of the United States, enhancing the dividend initiative of listed companies will help reduce dividend volatility and gradually realize "sticky dividends". In fact, in recent years, the fluctuation of China's A-share dividend yield has gradually decreased, and in this context, the certainty of dividend income of high-dividend strategies will be further improved, and the future investment prospects are broad.

A few days ago, China Life and Xinhua two major insurance companies plan to invest 50 billion yuan to set up a private placement**, which will be invested in A-share high-quality listed companies**, with high dividends preferred.

Essence ** analysis pointed out that the dividend return of high-dividend targets is relatively stable, which meets the requirements for the preservation and appreciation of insurance funds. From a long-term point of view, the macro economy has gradually entered the mature stage from high-speed growth, and the market prefers high-growth targets under the background of high economic growth, and the value of assets with high dividends and stable performance is underestimated, but with the gradual maturity of future economic development and the slowdown of GDP growth, and at the same time, in the context of the continuous decline in treasury bond yields, high-quality assets with stable performance and stable dividend returns are expected to be further valued by the market.

Funds are deployed in high-dividend companies

Judging from the performance of the constituent stocks of the Brand 100 Index this week, CIMC, Xiamen Xiangyu, Nongfu Spring, Sinotrans and Gree Electric Appliances have all achieved a slight **, while Hong Kong real estate stocks are in the forefront of decline.

According to public information, as a leader in the air-conditioning industry, Gree Electric Appliances has progressed smoothly in channel reform and gradually recovered its brand competitivenessOn the other hand, real estate, cost and other factors that inhibit industry demand are gradually easing, and the company's revenue performance is expected to increase.

In 2023, Gree Electric will reach an annual strategic cooperation with leading companies in the live broadcast industry and professional network promotion companies, and through a variety of marketing tools such as information flow advertising, it will accurately attract traffic to its self-operated live broadcast room, and the effective sales of e-commerce live broadcast will increase by more than 200% year-on-year. The company actively explores the diversification of cooperation, fully grasps the platform resources, deeply cultivates the channel of platform + brand, develops "Gree + Jingdong" joint stores, and expands the market scale of sinking channels. As of June 2023, more than 1,000 stores have been opened, comprehensively promoting the launch of various categories of products, and creating a one-stop shopping store.

From a long-term point of view, on the one hand, there is still room for improvement at both ends of the volume and price of the air conditioning industry, and Gree Electric is expected to benefitOn the other hand, the company has frequent diversification actions, and is expected to rely on energy storage, thermal management and other businesses to open the second growth curve and develop into a diversified industrial group.

Xiamen Xiangyu has been deeply involved in the bulk commodity trading industry for many years, and has successfully realized the strategic transformation from a traditional chain service provider to an integrated chain service provider. Through the three major solutions of "integrated service model, whole industry chain service model and industrial chain operation model", the company gives full play to its advantages in logistics and warehousing, digitalization and risk control, continuously improves operational efficiency, reduces business risks, and continuously improves profitability.

It is understood that Xiamen Xiangyu strictly implements the "Shareholder Return Plan (2022-2024)", and has maintained a high level of 50% and above since 2019, with a dividend rate of up to 56% in 2022 and a current dividend yield of 753%。Investments are risky, and independent judgment is importantThis article is for reference only and does not constitute a basis for trading, and you enter the market at your own risk. Cover***Visual China-VCG41N1162556855 Every reporter Liu Mingtao Every editor Xiao Ruidong.

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