tafatolubingo| Is it a high probability event that the main line of the market returns to high dividends? The S & P Dividend ETF (562060) closed up 1.33% to a record high! There are two points in market logic

Today's high dividend direction is strong throughout the day, with the coal sector surging more than 3 per cent, second only to non-ferrous metals and ranking second among 31 emergency industries, while petrochemical, public utilities and transportation are all up more than 1 per cent. In terms of key stocks, Shanxi Coking Coal, Lu'an Huaneng and Hengyuan Coal Power all rose more than 6%, COSCO Sea Control rose more than 2%, and Guanghui Energy rose more than 1%.

High dividend hot bidTafatolubingoS & P dividend ETF (562060) fluctuated, with the floor price up 1.33% and the daily line 3 Lianyang, with the latest closing price refreshing its highest level since listing.

In terms of quantity and energy, the S & P dividend ETF (562060) had a daily turnover of 63.89 million yuan and a turnover rate of 19%.Tafatolubingo.78%, both of them are in the forefront of A-share dividend theme ETF, with strong trading sentiment on the floor.

From the perspective of longer period, the excess performance of dividend strategy is significant. Take the S & P dividend ETF (562060) as an example, since its establishment on December 8, 2023, it has successively reached new highs. As of today's close, its underlying index range has risen 13.24%, significantly outperforming the Shanghai Composite Index (6.91%) and Shanghai and Shenzhen 300 (8.84%) over the same period.

What is the underlying logic of the continued strength of the dividend strategy?

Dividend assets have outperformed the market for more than three years since 2021. The essence of this round of dividend assets reflects the market's pursuit of certainty at the bottom of earnings growth, which is reflected in the dividend strategy that is "stable dividend premium".

The dividend strategy revolves around dividend rate stock selection, and the selected assets often have the attributes of low valuation, high dividend and stable dividend, which is also the deep logical support of the long-term effectiveness of the dividend strategy: the low valuation factor is effective for a long time, and the undervalued combination has obvious excess returns compared with the high valuation combination in the long run; while the high dividend corresponds to abundant and stable cash flow, there is a significant positive correlation between the dividend rate of listed companies and Cash ROA.

Some analysts concluded that the core advantages of the investment dividend strategy may have two main points: one is to earn profits through corporate dividends in the long period, and the other is to take advantage of the periodic low valuation of the market to defend or seek to repair profits in the short term.

How long will the dividend strategy market last?

Huafu Securities believes that from the perspective of "certainty", the conditions for the end of the dividend asset market may be similar to the core assets, that is, the profit growth rate of listed companies picks up. Corporate earnings as a nominal variable including price factors, its growth rate and PPI growth rate show a significant positive correlation. Data released on may 11th show that PPI grew by-2.5% year-on-year in April 2024, still in a negative growth range, so excess returns on dividend assets are likely to continue.

Ping an Securities believes that as the new "National Nine articles" promotes the transformation of the domestic capital market to an investment market, the follow-up incremental policies in the medium-and long-term funds to enter the market and enhance the inherent stability of the market can still be expected, and the dividend strategy is expected to spread further.

Shenwan Hongyuan Securities also said that after the short-term high-cut and low plate rotation and the repair of microstructure contradictions, it is a high probability event for the market main line to return to the broad sense of high dividend investment.

On the layout tool, the S & P dividend ETF (562060) passively tracks the S & P China A-share dividend opportunity Index (CSPSADRP). According to its latest monthly report of April 2024, the dividend yield of the S & P China A-share dividend opportunity Index (CSPSADRP) is as high as 6.12%. In the 19 years from 2005 to 2023, the cumulative return of the S & P A-share dividend total income index was as high as 1975.17%, with an annualized return of nearly 18%. Under the macro background of moderate slowdown in economic growth and downward risk-free interest rates, S & P dividend ETF (562060) shows outstanding allocation value with sustained and stable high dividends and cross-cycle profitability.

Data sources: Shanghai and Shenzhen Stock Exchange, Standard & Poor's Dow Jones Index, Wind, Warburg Fund, etc. The S & P A-share dividend total income index (which includes dividends of constituent shares) rose or fell in the past five complete years: 2019, 21.53%; 2020, 6.12%; 2021, 23.12%; 2022,-3.59%; 2023, 14.21%.

Risk Tip: the S & P dividend ETF passively tracks the S & P China A-share dividend opportunity Index (CSPSADRP), which has a base date of June 18, 2004 and a release date of September 11, 2008. the composition of the index stocks is timely adjusted according to the rules governing the compilation of the index. The risk level of the fund assessed by the fund manager is R3-medium risk, which is suitable for investors of balanced type (C3) or above. Any information that appears in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only and the investor is responsible for any discretionary investment behavior. In addition, any point of view, analysis and forecast in this article does not constitute any form of investment advice to the reader, nor is it liable for direct or indirect losses arising from the use of the contents of this article. Fund investment is risky, the past performance of the fund does not represent its future performance, and the performance of other funds managed by fund managers does not constitute a guarantee of fund performance, so fund investment should be cautious.