Zhitong Financial APP learned that in order to further improve the continuity and stability of dividends and enhance the investment capacity of the index, the Shanghai Stock Exchange recently revised the compilation plan of the Shanghai dividend index. After the revision of the plan, the Shanghai dividend index will better help investors to invest in the securities of listed companies with high dividends while meeting the requirements of diversification, stability and tradability, which will become an important measure to meet market demand and serve investors.

The original text is as follows:

Revised dividend Index of Shanghai Stock Exchange serves long-term value Investment demand

Dividend is an important source of investment return of listed companies, and long-term stable cash dividend is an important index to measure the investment value of listed companies. In order to further improve the continuity and stability of dividends and enhance the investment capacity of the index, the Shanghai Stock Exchange has recently revised the compilation plan of the Shanghai dividend index.

The Shanghai dividend Index was published in 2005. 50 securities with high cash dividend yield, relatively stable dividend, certain size and liquidity listed on the Shanghai Stock Exchange are selected as index samples to reflect the overall performance of high dividend securities in Shanghai. The average historical dividend yield of the Shanghai dividend index is about 4%, which is higher than the traditional broad-based index. In terms of long-term performance, the annualized return of the Shanghai dividend index has been higher than that of the Shanghai index since the base date, and the excess return has been significant since 2022, with a cumulative income of 3.78% since the beginning of the year. After the revision of the plan, the Shanghai dividend index will better help investors to invest in the securities of listed companies with high dividends while meeting the requirements of diversification, stability and tradability, which will become an important measure to meet market demand and serve investors.

In recent years, the Shanghai Stock Exchange has continuously issued relevant guidelines to encourage and guide listed companies to pay dividends. Listed companies in Shanghai stock market not only continue to increase in the number and total amount of cash dividends, but also have gradually formed a number of traditional and model companies with long-term stable cash dividends. At present, the total annual cash dividend in the Shanghai stock market is about one trillion yuan, and the dividend yield has reached 2.22%, roughly the same as the S & P 500 index and the Dow Jones Industrial average. From overseas experience, in the process of market maturity, listed companies with excellent fundamentals, continuous improvement of future cash flow and consistent with the transformation and development of economic structure are the best targets for investors to invest in long-term value. The Shanghai dividend index with these companies as the main sample will certainly become a useful tool to enrich investors' long-term value investment, and will also promote a large number of listed companies to further enhance their social responsibility and shareholder awareness.

At present, there are nearly 20 dividend index products on the market, with a total scale of more than 30 billion yuan, of which the largest product scale is the Shanghai Stock Exchange dividend Index. The total scale of tracking index products exceeds 18 billion yuan, accounting for about 60% of the dividend index products in the whole market, and the scale continues to increase.

This article is edited from the official account "released by the Shanghai Stock Exchange" of Wechat; Chen Shiye, financial editor of Zhitong