After days of fluctuations, the "new highs" have finally arrived. On November 13 and 14, the Shanghai Composite Index consecutively refreshed its peak, reaching an intraday high of 4,034.08 points.
This year, while tech stocks have shone brightly in the A-share market, many high-dividend stocks have also delivered impressive performances, creating a clear "seesaw" pattern in the market. Industry experts believe that high-dividend stocks are a key theme in this bull market and remain one of the best long-term allocation choices.
**High-Dividend Leaders Continue Setting Records** In 2025, China Hongqiao Group repeatedly hit new all-time highs, as did Agricultural Bank Of China Limited (601288.SH) and Zijin Mining Group Company Limited (601899.SH). Companies like PetroChina and CNOOC have also recently reached new highs, with these stocks sharing a common trait—high dividends.
This year, the A-share market has exhibited a defining characteristic: a stark divergence and rapid rotation between high-dividend and high-growth tech stocks, forming a distinct "seesaw" dynamic. When external uncertainties rise, funds flow into stable, high-dividend sectors for "immediate certainty." Conversely, when risk appetite rebounds, capital swiftly shifts back to high-growth tech sectors for "future upside."
**Multiple Catalysts Driving High-Dividend Appeal** High-dividend stocks have gained favor this year, buoyed by several factors: the yield advantage amid global rate cuts, their defensive appeal in a slowing economy, and policy-driven capital inflows.
In October 2025, the Fed implemented its fifth rate cut of the year, with further reductions widely anticipated. Against this backdrop, fixed-income yields have declined—for instance, major banks now offer three-year deposit rates as low as 1.25%, while most wealth management products struggle to exceed 5%. In contrast, high-dividend stocks offer yields of 6%-8%, even after accounting for Hong Kong's 20% dividend tax, making them more attractive than deposits and many financial products for yield-seeking investors.
Amid slowing global growth and heightened market volatility, high-dividend stocks—concentrated in stable sectors like energy, telecoms, banking, and utilities—have become a preferred hedge due to their resilient cash flows and mature payout policies.
**Regulatory Shifts Favor High-Dividend Stocks** New accounting standards (IFRS 9 and IFRS 17) are reshaping insurer portfolios. Under IFRS 9, insurers must classify equities as either fair-value-through-profit-or-loss (FVTPL) or fair-value-through-other-comprehensive-income (FVOCI). The latter restricts profit recognition to dividends, making high-yield stocks ideal for stable income.
IFRS 17 increases insurers' sensitivity to interest rate swings, incentivizing allocations to high-dividend stocks to smooth earnings volatility.
**High-Dividend Stocks with Growth Momentum** Wind data shows 50 A-share companies maintained dividend yields above 5% from 2022–2024, with 37 posting gains this year. Zhongchuang Zhiling (606717.SH) led with a 94.83% surge, while others like Baichuan Energy and Mercury Home Textile rose over 30%.
Among these, 18 firms delivered consistent profit growth from 2022–2024, with 13 sustaining growth into 2025. Yutong Bus stood out, doubling net profits in 2023 and 2024, followed by a 35.38% YoY increase in Q1–Q3 2025. Zhongchuang Zhiling also maintained robust growth, with profits rising over 20% annually from 2022–2024 and a 19.17% YoY gain this year.
*(Mentioned stocks are for illustrative purposes only and not investment recommendations.)*
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