The dividend index of A-shares is undoubtedly the brightest strategy index so far this year.
CSI Dividend is also a rare double-digit year-to-date increase among the core indexes.
However, with Thursday's market, it may be necessary to further increase the attention to the high-dividend sector of Hong Kong stocks.
Why should you pay attention to the high dividend of Hong Kong stocks, the chart below is the comparison of the trend of CSI Dividend and CSI Hong Kong Stock Connect High Dividend Index so far in 2023, an interesting phenomenon on Thursday is that CSI Dividend (red) rebounded slightly after the previous surge and retreat, while the CSI Hong Kong Stock Connect High Dividend Index rose 1.24%, refreshing a new high.
This trade-off is worth paying attention to after all.
If you release the rotation prism of the two indices so far in 2019, you will find that from 2020 to 2022, the dividends of A-shares have been stronger than the high dividends of Hong Kong stocks, so the ratio curve has risen steadily. But this strength, which has changed since 2023, has been in a narrow range.
If you observe the 40-day return difference, it is more intuitive that in the strong stage of A-shares, the A-share CSI dividend will outperform by 10 points or more in 40 trading days, but after 2023, there will rarely be such an exaggerated return difference, but after the -20+ income difference once appeared, it will be in a narrow range of shocks.
This means that the high dividends of A-shares and Hong Kong stocks go hand in hand.
However, we should also note that the odds curve in the chart above is in a very narrow Bollinger Bands track, and if there is a downward breakout, it may mean that Hong Kong stocks are leading the trend with high dividends.
Although Hong Kong stocks have been miserable in recent years, don't underestimate this possibility - after all, the way of thinking of high-dividend stock enthusiasts is very different from that of Hong Kong stocks, Chinese concept stocks, and Hong Kong medical stocks.
CSI dividends have been unlimited, but after the adjustment of constituent stocks at the end of last year and the sharp rise this year, a display that cannot be ignored is that the latest dividend yield has fallen to 5.16%, although the interest rate of 30-year treasury bonds has fallen more sharply in the same period, but in absolute terms, it is certainly not as attractive as the original level of 6%+.
So what about the high dividends of Hong Kong stocks?
Judging from the data of several major Hong Kong stock high dividend indexes, CSI's Hong Kong stock high dividend is the best performance this year, close to double-digit gains, but after rising so much, the dividend yield is still 8.07%.
That's a high level of 8%+. Although Hong Kong stocks have to pay 20% dividend tax due to the tax system, it is estimated that ordinary people can enjoy 6.45% according to the 20% discount, but it is also a relatively attractive level - not to mention that for corporate investors, "the dividend income obtained by mainland resident enterprises holding H shares for 12 consecutive months is exempt from corporate income tax according to law", so the dividend yield gap is even greater.
The problem with Hong Kong stocks in recent years is that it is not easy to rise.
But if you are determined to receive dividends, then it doesn't matter if it can go up or not. Just be patient and collect dividends.
From this perspective, the recent performance of Hong Kong stocks with high dividends deserves great attention, especially whether there will be a new trend at the level of rotation prism.
Perhaps, the next stop of dividend investment is the high dividend of Hong Kong stocks.
From this point of view, a complete dividend fund portfolio is really indispensable for Hong Kong stock high-dividend funds, as well as his close relative, HK Bank Fund.