high-dividend-strategy

Define the analysis scope such as CSI Dividend Index constituents or a custom list, then compute dividend yield, payout ratios, free cash flow coverage, and 5-year total return with reinvested dividends. Rank candidates using weighted scores across return, yield, growth, and sustainability.

Check free cash flow coverage above 1.3x, profit payout ratio below 70% (80% for banks and utilities), continuous dividend history, low earnings volatility, and reasonable debt levels. A 100-point scoring model combines these factors into a sustainability rating.

A free cash flow coverage above 2.0x is excellent, 1.5-2.0x is good, and 1.2-1.5x is acceptable. Below 1.0x means cash dividends exceed free cash flow, signaling high risk of a dividend cut.

A-share dividend tax depends on holding period: holdings over one year are tax-free, one month to one year is taxed at 10%, and under one month at 20%. Long-term holding above one year maximizes after-tax dividend income.

A high yield may result from a sharp stock price decline rather than generous payouts. Always pair yield screening with sustainability analysis covering cash flow coverage, payout ratios, and earnings stability to avoid dividend traps.

No. Stock dividends (送股) and capital reserve conversions (转增) only increase share count without generating cash income. This analysis counts only actual cash dividends when computing yield and total return.