The source of income for a high dividend strategy can be divided into profitability and dividend income under the following conditions:
1) The company with high dividend yield is relatively strong and stable profitability, profitable growth of money;
2) Companies with higher dividends are valued lower and earn money on valuation repair.Previously, the high dividend strategy had seen a “profit loss” phenomenon, which did not effectively counter the downside of the market, leading to it even known as the “high dividend trap”.
But the current valuation of high dividend stocks continues to fall, disguised dividend returns increasingly high, the probability and space of future upward convergence are increasing, and the advent of profit inflection point will also generate boost.Recently, blue-chip “upward” China Shenhua dividend rate exceeded 13%. The dividend distribution of Shenhua$CHINA SHENHUA(01088)$ continued to grow in recent years, with dividend payout of $1.26, $1.81 and RMB 2.54 for the third consecutive year between 2020 and 2022. The dividend payout ratio range from 60% to 100%.Shenhua has issued Yingxi in the first half of its results. Interim profit is expected to increase by 58.5% to 62.3% to RMB42 billion to RMB43 billion, mainly due to rising average selling prices of both coal and selling prices, resulting in an increase in profits from the coal and power generation business.
At present, the Mainland enters peak electricity usage, greater demand for coal, and the price of power coal continues to rise. High coal prices and low supply in the Mainland promote the coal industry in the growth cycle, plus EU sanctions Russian coal, support international coal prices, so the business environment of Mainland coal enterprises is better, and SHENHUA's business has development advantages, covering coal, electricity, railway, port and fleet transport Coal-made olefins and other businesses.
JPMorgan Chase has the ability to maintain a high dividend yield until early next year, raise the rating and target price of China Shenhua (01088). The profit outlook is more stable than other coal stocks.So my preferred high dividend stocks are $CHINA SHENHUA(01088.HK)$
Modify on 2023-01-07 01:03
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