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High stable dividend distribution stocks are a safe haven for funds when the market trend is poor
When the market performs poorly, blue chip stocks , which have high bonus and transfer dividends and have stable operations, becomes "safety haven" . These stocks usually have the characteristics of good profits and low capital expenditures , so they can issue higher cash dividends (stability of non-stock dividends), which is a stable goal for long-term investment. In the past, high bonus and transfer stocks usually performed around the peak season after the interest rate allocation figures were announced.
When the prices of many people's biological resources continue to rise, people who put money in the bank will have a strong feeling that the purchasing power of money is getting smaller and smaller, but. Although interest rates have slowly rebounded after the economic situation gradually recovered, the direct impact of rising prices is that money has become thinner. Therefore, how to find a tool that is not high at risk and can improve the return on investment in is believed to be a topic that many investors who pursue stable returns pay attention to . Stocks that are allocated high dividends (high cash profit margins) are gradually receiving attention from investors.
Find low-risk, high-cash dividend stocks
The calculation method of cash dividend yield is: divide the cash dividend per share by the current stock price, and easily calculate the cash dividend yield rate of each company. In the annual historical data of the stock market, if you add the cash dividends per share in the last three years and divide them by three, you can get the average cash dividend allocated in the last three years. Then divide the average cash dividend allocated in the past three years by the current stock price to get the most likely average cash dividend yield rate of the company. Why use three years as the benchmark for calculation? Because the company's annual funding needs are different, the cash dividends allocated may also vary, so using only the last year as the calculation benchmark may cause distortion. However, if investors have to be more conservative, they can also use five years as the benchmark for calculation.
However, alone calculates the cash dividend yield rate, , because there are many companies with cash dividend yield rate exceeding 5%, but the implicit risks vary, so the better (lower risk) investment targets should be selected from other aspects. Factors to be considered include:
1. Long-term trend of cash dividend allocation: From the perspective of three or five years, will the company's interest allocation gradually increase or decrease gradually? If it gradually decreases, we may have to doubt whether the company can maintain an average interest allocation level in the future. In addition, the stability of interest allocation should be high, and there should be no ups and downs. It is ideal that the proportion of cash dividend per share to earnings per share can maintain an approximately fixed proportion.
2. We also need to pay attention to whether the company's long-term profits are stable , because only by continuing to make profits can the company have the ability to continuously allocate interest.
3. The debt ratio should not be too high, because investing in stocks with high cash dividend yields is to avoid the higher risks of general stocks. Although the high debt ratio does not necessarily mean that there is immediate financial risk , it is always not reassured by ordinary investors. Generally speaking, the long-term debt ratio of should not exceed 35%, and the total debt ratio should not exceed 70%.
above three points can be easily found in the financial information of the stock market. After calculating the average cash dividend yield rate, and after the simple screening of the above three points, I believe that every investor should be able to easily select the investment goals that suit him.
