Category: Money Tips Date: 2006-08-22
In the investment practice, the dividend yield is a measure of whether the enterprise with investment value of one of the important benchmark. In recent years, the ranks of institutional investors with the extraordinary development of indicators of concern about the dividend yield has improved markedly. The reason put forward in the current market environment, emphasis on dividend yield that the value of evaluation index, mainly taking into account the long-depressed stock market, investors will be selected to promote more conservative investment approach to circumvent the risk of market transaction-based. We believe that the current long-term investors tend to get a return from dividends in the will is growing. Therefore, the dividend yield as the selection of individual stocks based on the current market time is ripe for the application. Is particularly noteworthy is the split share structure reform process, some companies made a commitment to dividends, which indicates that the age of post-split share dividend rate as an investment benchmark value of investing in new orientation formation.
One with high capacity of blue-chip dividend growth of corporate maturity, will carry a value investment philosophy and to promote full circulation against the background of the long-term stable development of the securities market.
China's stock market 10 years of development history, the market experienced deep-seated change in philosophy. Since 2002, due to securities investment funds, ultra-conventional development, QFII's the gradual entry of insurance funds into the market such as the formation of a new pattern of funding means that the capital market investors and has undergone tremendous changes. Value investment philosophy also came into being. The blue-chip companies with high dividend capacity of the stable development of growth and maturity, it is as bearers of value investing philosophy, in order to invest in the concept of deepening and the formation of profit model to provide an opportunity for the investment value of the securities market to enhance the overall positive impact.
Second, the system in the context of policy guidelines for the evaluation of the dividend yield as an investment benchmark based on providing support and protection.
Late last year, the SFC published "on the strengthening of public shares of a number of provisions protecting the interests of shareholders" and proposed that listed companies have not carried out the last three years of cash distribution of profits shall not be issuing additional shares to the public, issuing convertible bonds or to the original shareholders to subscribe for shares. Investors thus can share the results of the development of enterprises. In mid-June of this year, the Ministry of Finance, the State Administration of Taxation issued a circular to that individual investors get dividends from listed companies, dividend income, temporarily reduced rate of 50% of the individuals included in taxable income. This will help to enhance the dividend yield of individual investors. Therefore, the relevant policies and systems came out, makes the dividend yield as a measure of return on index of listed companies as well as the choice of investments for the market to provide reference.
Third, the context of split share structure reform, G-share companies because of the price increase caused by the level of dividend yield, allowing institutions to invest in high-return business enthusiasm up. Of particular concern is that in the process of share reform of the initiative promised dividends of listed companies, but also highlights the value of investment in a new direction.
Post-tradable shares into tradable times the institutional context, the market valuation of this position will also be adjusted. Is precisely because of the realization of the price, G-share companies rapid increase in the level of dividend yield. According to relevant statistics, the current dividend rate in Shanghai and Shenzhen top 100 enterprises, G Unit, occupy 27. As a result, high dividends of listed companies to give investors the rate of return increase, triggering the market for high-return business concern and investment interest. In addition, the share reform program settings, some blue-chip enterprises to return the dividends the next few years to make a clear commitment to protect the future of high dividend yield sustained and sustainable development of the company's expectations, but also a new historical phase of the investment options provided Vision. Results show that the share reform program has been disclosed in the company, with 68 listed companies to the next dividend commitments. Therefore, we believe, performance and stability, with a high dividend is expected and the fast-growing company, is bound to become tradable after the darling of the era.
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