Text |Bank Screws **Please obtain my authorization, and indicate the author and source).
I introduced the dividend series index to you before, and many friends are interested in the leading dividend index.
I want to know about the rules of the index, how the investment is worth, how it differs from other dividend indexes, valuation, etc.
As we mentioned earlier, there are three main types of dividend indices:
1) Single-strategy dividend index, which mainly uses dividend yield to select stocks.
2) A multi-strategy dividend index, which is usually an overlay of a dividend strategy and other strategies.
3) Industry dividend index, that is, an index composed of a certain industry and a dividend strategy.
The leading dividend index is the superposition of the leading strategy and the dividend strategy, which is a kind of multi-strategy dividend index.
The leading strategy is to select the leading companies in the subdivided industry, generally the top companies with the highest income in the industry.
The underlying logic of this strategy is that some industries have a leading effect.
For example: liquor, dairy products, home appliances and other industries with brand advantages;
Minerals, materials and other industries with cost advantages.
Leading companies tend to have more stable profits and stronger dividend distribution capabilities.
Then combined with the dividend strategy, that is, from the leading companies, choose the highest dividends and higher dividend yields.
Indices that apply both the leading strategy and the dividend strategy, and currently there are mainly leading dividend 50 index (995082).
The Leading Dividend 50 Index (995082) was established in December 2021.
Because of the application of the leading strategy, the market capitalization of the constituent stocks of this index is relatively high.
As of January 24, 2024, the average market capitalization of the constituents of the Leading Dividend 50 Index is 24072.6 billion, with a median market capitalization of 6973.1 billion.
In comparison, on January 26, 2024, the average market capitalization of the CSI 300 is 14462.6 billion, with a median market capitalization of 7501.8 billion.
It is not difficult to see that the leading dividend 50 index is a typical dividend index dominated by ** stocks.
The stock selection rules of the leading dividend 50 index are:
First of all, select the leading companies with high operating income in each sub-industry with high growth rate or high concentration.
Among these companies, the top 50** companies are selected by dividend yield and profitability after excluding those with high ESG risk, poor dividend payout ratio stability and low excess returns.
Therefore, the leading dividend 50 index can reflect the overall performance of leading stocks with sustained high dividend paying ability in the A** market.
From the perspective of industry distribution data, the leading dividend 50 index is dominated by energy, finance, optional consumption, industry and other industries.
Moreover, the industry distribution is relatively even, and the proportion of the top industries is about the same.
In addition, because the leading dividend 50 is a typical value-biased index, and it is more biased towards traditional high-dividend industries.
Therefore, the proportion of industries with growth-oriented attributes such as information technology and health care is relatively low.
The following is the trend chart of the leading dividend index, which can be seen that the index is long-term upward.
After 3 stars in 2021, the value style is relatively strong, so the leading dividend 50 index has not fallen much in recent years, and its performance is relatively stable.
In comparison, if you consider the dividends, the leading dividend of 50 full income is also better than the full return of CSI dividend and CSI 300 full income in the same period.
By the end of 2023, the valuation of the leading dividend 50 index has also returned to the undervalued area.
From the perspective of historical valuation, it is roughly within the lowest 10% of the past ten years.
Since 2024, the performance of the leading dividend index has been relatively stable, and the valuation percentile has not changed much in the last month.
** that tracks the leading dividend 50 index, there is currently one.
This index** was established in December 2023, which is relatively new.
After the index** is established, it will go through a position opening period, which may be one or two weeks for the short term, and may take 3 months or even half a year for the long term.
Generally speaking, when the rise and fall of the index** is relatively close to the rise and fall of the index, the position is completed.
The leading dividend index (995082) is the superposition of the leading strategy and the dividend strategy. At the same time, it is more inclined to ** in style.
In terms of industry distribution, it is dominated by energy, finance, optional consumption, industry and other industries.
From the perspective of long-term returns, the leading dividend 50 index has performed stronger than the CSI dividend and CSI 300 in the same period.
Author: Bank Screw**Please obtain my authorization, and indicate the author and source).
PS: Friends who are interested in index**, welcome to read "Index ** Investment Guide" and "Ten Years of Financial Freedom of Regular Investment".