High dividend companies have accumulated a lot of "redundant liquidity" after the epidemic and are returning to shareholders in the form of a large proportion of dividends.

• They have enjoyed extremely low financial expense rates in recent years (private enterprises are even lower than state-owned enterprises), their debt ratios have risen continuously, but the intensity of capital expenditure has fallen year after year; they have ample cash on hand, undistributed profits as a share of market capitalization has reached an all-time high, ROE has bottomed out and rebounded in 2021, and the dividend ratio has risen year after year.

• Investing in this kind of company seems to buy a stable dividend, but in essence, it precipitates a lot of financial resources to some of them when the "wide currency-> wide credit" is not smooth.Stable companies seek "interest rate spreads".

• From a longer-term perspective, benefiting from supply-side reforms and carbon neutrality, excess profits and cash flow from rich liquidity, steady growth and cash flow precipitate in industries and companies with improved patterns.

Compared with A shares as a whole or debt, companies with high dividend yield have a historical performance-to-price ratio.

• As of March 29, the dividend yield of the CSI was as high as 5.5%, which is 99% of the historical quantile since 2008.

• Compared with the 10-year bond interest rate, the dividend yield of the CSI dividend index is 2.7% higher; compared with the Shanghai and Shenzhen 300, the dividend yield is about 3% higher, both at the high historical limit.

• Assuming that the dividend ability and willingness of high dividend companies continue to improve in the future, then the potential dividend yield return will increase.

Attach importance to the tactical offensive value and strategic defense value of the high dividend strategy in 2022:

1) Tactical offense-laying the groundwork for supply-side reform and catalysing steady growth, with an upward option more than a "low valuation".

• It is difficult to form the main line assets, and the bottom of the second quarter still needs to be found another way. At present, the foundation laid by supply-side reform is still in place, steady growth and the catalysis of "mini policy bottom".Continue to bring upward elasticity to the periodic plate.

• Pro-cyclical low valuations in 2022 are similar to those in 2012, and there may also be two waves of opportunities: before 22Q3, it is generally expected that it will take time for stable growth to appear, it is difficult to generate effective expectations for subsequent fundamental improvements based on a single policy, the transmission from "policy bottom" to "market bottom" is not smooth, and a series of "mini" policies will continue to consolidate market expectations, making cyclical sectors continue to be flexible. 22Q3-Q4 may still have a chance of an economic bottom.

2) Strategic defense-high Sharp ratio and historical performance-price ratio add a layer of protection to the "periodic attack".

• From 2011 to 2021, CSI dividends earned an average annual dividend return of 3.8 per cent and a capital gain return of 6.8 per cent, of which the dividend yield rose systematically to about 5 per cent between 2019 and 2021. From 2011 to 2021, the price of the CSI dividend index fell even less. The capital gains of CSI dividends have not fallen since 2022.

• From the perspective of global asset allocation, the Sharp ratio of CSI dividend index is higher than that of Shanghai and Shenzhen 300 and Shenzhen 100, but only slightly lower than that of S & P 500.

• From the perspective of industry allocation, the absolute returns of many sectors with high dividend yield are actually relatively stable.The probability of absolute positive income from automobile, food and beverage, building materials, medicine and biology, chemical industry, mining and transportation is higher.Considering the weight comprehensively, the card has been given to China since 2012.The industries with the largest yield of dividend contribution are automobiles, banks and building materials.

A list of the Top Ten High-interest Blue chips in Hong Kong stocks

• Interest-bearing stocks can provide stable returns. Investors can make reference to stocks with a stable dividend payout history and the nature of their business when formulating their portfolios for the coming year.

• The banking sector is one of the first choices of interest-receiving stocks.In particular, the current valuation of bank stocks is low, and the dividend yield is generally over 6%.

• The following table shows the top ten high-interest blue chips in Hong Kong stocks.

Dividend surprise stock

A number of enterprises doubled their dividends in 2021, including$Yuexiu Transportation Infrastructure (01052.HK) $ 、$SITC International Holdings (01308.HK) $、$NONGFU SPRING CO., LTD. (09633.HK) $ 、$China Petroleum & Chemical Corporation (00386.HK) $、$Li Ning Co. Ltd. (02331.HK) $、Blue Moon Group (06993.HK) $The increase was as high as 771%, 290%, 165%, 135%, 125%, 100%.