A few days ago, Gree announced a large-scale mid-term dividend payment to attract market attention. As the market continues to fluctuate, many institutions have recently begun to refocus on the high dividend sector and corresponding investment strategies. For investors, based on the dividends of A shares listed companies in 2021, what are the high dividends stock worth paying attention to?
According to statistics and calculations by China Securities Journal reporters, on the premise that the cash dividend amount per share of A-share listed companies in 2022 is consistent with that in 2021, if investors choose to buy at the closing price on the last trading day before the Spring Festival of the Year of the Tiger (January 28), the dividend yield of as many as 679 individual stocks in 2022 is expected to exceed the yield of Yu'ebao .
Nearly 700 stocks dividend yields are expected to outperform Yu'ebao
Under the volatile market, the market's attention to companies with stable profits, small stock price fluctuations but stable dividends are heating up. Wind data shows that in 2021, a total of 3,047 companies in A-shares distributed cash dividends, accounting for more than 64%. The difference in stock prices makes investors hold different dividend rates for different targets. If we take its 2021 dividend plan as a reference, how can we grasp the investment value of the high dividend sector in 2022?
Wind data shows that assuming that the cash dividend per share of A-share listed companies in 2022 is consistent with that in 2021, the closing price of the last trading day before the Spring Festival in the Year of the Tiger (January 28) is the buying price. In the case of ignoring transaction fees and taxes, the dividend yield of 1,489 individual stocks is expected to exceed 1%, the dividend yield of 111 individual stocks is expected to exceed 5%, and the dividend yield of the top ten individual stocks is all exceeding 10%.
As of the close of January 28, the share price of Jiangling Auto was 15.6 yuan per share, and its cash dividend per share in 2021 reached 3.476 yuan (including tax); if the company continues to maintain this dividend scale in 2022, investors who bought at the closing price on January 28 will be expected to have a pre-tax dividend yield of 22.28%, while in 2021, the A-share stock price increase is less than this indicator.
Calculated as described above, the dividend yields in 2022 are Fangda Special Steel , Chongqing Department Store , Sunshine City , Liberal Arts Garden , Zhongnan Construction, Haosini, Huijie Co., Ltd., Sanxiang Impression, Jinke Co., Ltd. , etc., and their dividend yields range from 10% to 14.25%. A total of 679 individual stocks have a dividend yield of more than 2.11%, which is more than Yu'ebao's latest seven-day annualized yield of 2.107%.
The top ten A-share listed companies with expected dividend yields in 2022
Data source: Wind
Which sectors or industries are more dense in high dividends? After sorting out, it was found that the 679 companies whose dividend yield calculated in the above-mentioned method outperformed Yu'ebao's income, are relatively densely distributed in pharmaceutical, biological, mechanical equipment, real estate, utilities, banking and other industries; of the 111 companies whose dividend yield is expected to exceed 5% in 2022, 20 are concentrated in the real estate field, and in addition, the distribution of industries such as banks, transportation, coal, and building materials is also relatively concentrated.
Tactical opportunities to attach importance to high dividend strategies
Whether from the theoretical level or from the practical level, holding high dividend stocks is a stable profit strategy for investors, especially in market fluctuations and obvious stock price fluctuations.
CICC Securities pointed out that the stock price is proportional to the stock dividend, and the high reinvestment returns brought by high dividends are the basis for its long-term effective high dividend strategy. High-dividend companies have a series of characteristics such as excellent financial performance, abundant cash flow, and stable profitability. Most of these targets are bank stocks with large market value and small stock price fluctuations, utility stocks, cyclical resource stock leaders, etc. Therefore, when confidence is insufficient and the market performs weakly, the defense attributes of high dividend strategies appear, and at the same time, they can also obtain considerable dividend returns.
CICC Securities believes that when the term spread narrows and credit spread widens, the market risk preference declines, and assets with stable operations and stable dividends will be favored by investors. In addition, rising credit spreads often mean that corporate financing costs are rising, which is beneficial to the banking sector and also to the CSI dividend index , which accounts for a greater weight.
Shenwan Hongyuan Securities metalworking team pointed out that as far as A-shares are concerned, from June 2015 to February 2016, the market was in a downward stage, with Shanghai and Shenzhen 300 Index falling by 39.31% cumulatively, while the CSI dividend index fell by 35.78%; from February 2016 to December 2017, when the market was in an upward stage, the CSI dividend index also performed well. In the Hong Kong stock market, the Hong Kong Stock Connect high dividend full income index also has higher returns and smaller drawdowns compared with the Hong Kong Stock Connect full income index.
Edited by: Yu Hongbo
