“Focus Stocks: High Dividend ETF Begins Ex-Dividend Trading, Top 5 Popular Stocks Rise Over 2%”

By admin Mar 19, 2024
Abbreviation ETF on the background of one hundred dollar bills

Recently, the high dividend ETF in the Taiwan stock market has sparked a buying frenzy, drawing attention from regulatory authorities. The Financial Supervisory Commission (FSC) emphasizes that it will not suppress ETFs and will strengthen regulation in three aspects. Market buyers have targeted multiple ETFs for ex-dividend trading, continuing to invest in popular options such as 00919, 00929, 00900, 00918, and 00915, which saw their stock prices rise by over 2% today (19th).

In the morning session, the Taiwan stock market initially faced selling pressure, dropping to 19,762 points. However, small and medium-sized stocks showed lively performance, with electronics and financial weightings gradually stabilizing, leading the overall market to turn from losses to gains.

The high dividend ETFs staged a remarkable performance last week, with the Yuanta Value High Dividend ETF (00940-TW) under Yuanta Investment Trust exceeding market expectations in fundraising. This success propelled the entire high dividend ETF group to flourish, with multiple ETFs reaching new highs since their listing.

From an overall economic perspective, January’s export orders are showing positive growth, and the economic stimulus signal has turned green after a 16-month hiatus. Currently, there are no significant negative factors, and market analysts indicate that the market remains stable overall. As an investment strategy, it is advisable to select targets with lower base periods when the index pulls back from highs, rather than continuously chasing prices.

ESG Low Carbon High Dividend ETF Manager at Yuanta, Zhang Yilin, noted that the Producer Price Index (PPI) in the United States reached a six-month high in February, indicating ongoing challenges in combating inflation. In terms of the Taiwan stock market, it has reached relatively high levels, with accelerated capital rotation, so caution is advised to guard against a correction after a prolonged market rally. The component stocks of high dividend ETFs, which continue to distribute dividends, represent relatively stable operations, making them a resilient choice to participate in the market and withstand market fluctuations.

Huang Yuxiang, Fund Manager of Fubon Select High Dividend 30 ETF, mentioned that while the index is currently at relatively high levels, there is still room for overseas market demand to recover. If the Federal Reserve adjusts its interest rate policy after the third quarter of this year, non-essential demand is expected to increase, and some companies may replenish inventory in the second quarter, potentially boosting supply chain revenue.

KGI Securities stated that looking ahead to the second quarter of the Taiwan stock market, corporate earnings will maintain a growth trajectory, albeit at a slower pace. The market trend is expected to show high-level fluctuations. Using a low volatility, high dividend, high-quality multi-factor stock selection strategy such as 00915, the component stocks are likely to maintain price momentum competitiveness. By pursuing dividends, investors can also capitalize on capital gains opportunities.Jump to latest

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