A-share market style has recently shown a pronounced rebalancing, with technology growth stocks swinging lower while capital keeps rotating toward low-valuation, high-dividend names. Dividend-focused sectors such as banks, coal, oil and petrochemicals, and insurance have repeatedly come back to life. Why is the dividend trade staying strong, and how can investors seize the opportunity?

Multiple forces align to support the dividend theme

On the payout side, dividend distributions are becoming more routine and accelerating. Interim reports show that since the start of 2026, A-share listed companies have steadily strengthened their willingness to pay dividends, with both the number of interim dividend payers and the total payout amount continuing to grow year on year. A normalized, sustainable shareholder return mechanism is gradually taking shape. As of Oct 13, 2026, Wind data show that among all A-share listed companies, 878 had implemented or announced interim profit distributions for 2026, with total dividends expected to reach RMB 738.954 billion, up 2.21% and 1.46% respectively year on year; 370 companies are expected to pay interim dividends exceeding RMB 100 million. By dividend scale, among SW Level-1 industries, banks, oil and petrochemicals, and telecommunications ranked highest for 2026 interim payouts. As regulators tighten listed companies" return responsibilities at the institutional level and improve dividend and buyback mechanisms, positive signals are being sent to investors, which may help further lift market confidence.

On the capital side, long-term funds are accelerating their allocations. Some analysis notes that with interest rates staying low and liability-side costs rigid and slow to decline, dividend income has become an important supplement to insurers" cash yields. According to institutional research, by the end of the first half of 2026, insurers" heavily held tradable shares were still mainly spread across manufacturing, financials, and utilities; in terms of holding characteristics, the median dividend yield of heavily held stocks rose from 1.19% at the end of Q1 2026 to 1.53%, while the share of holdings with a dividend yield of no less than 5% also climbed from 7.8% to 15.0%, reflecting insurers" continued push into high-dividend assets in a low-rate environment.

On the valuation side, the value of high-yield assets is coming to the fore. In a low-rate environment, the value of high-dividend assets is increasingly prominent. According to Wind data, as of Sept 15, 2026, the average dividend yield of 42 A-share listed banks reached 4.3%. Over the same period, the latest dividend yields of the Stock Connect High Dividend (HKD) Index and the High Dividend Strategy Index were 5.00% and 4.42%, respectively. Some analysts say the market"s valuation logic for the dividend sector is gradually shifting from "chasing growth" to "valuing certainty of cash returns," which may give companies with regular high payouts medium- to long-term allocation value.

Long-term allocation logic for dividend assets remains intact

Analysts believe that as growth sectors adjust, some funds are actively reducing portfolio volatility and using dividend assets as defensive allocations. A deeper support is that the rate environment may still decline, and the appeal of dividend strategies to long-term funds such as insurers and wealth management products may strengthen further, potentially supporting related stock valuations.

Some institutions further note that the long-term allocation logic for dividend assets has not changed, but short-term performance may have shifted toward structure selection driven by fundamentals; future relative performance may depend more on earnings recovery and dividend delivery. As interest in dividend strategies continues to heat up, investors can, in light of their own investment goals and risk tolerance, watch the Yinhua High Dividend ETF (563180) and its feeder funds (Class A: 022144; Class C: 022145), as well as the Yinhua Hong Kong High Dividend ETF (159302), for one-click exposure to dividend assets.

Risk warning: Fee details for Yinhua High Dividend ETF: subscription/redemption fees—authorized subscription and redemption brokers may charge a commission of no more than 0.50%; management fee 0.50% per year; custody fee 0.10% per year; total annualized fund operating expenses 0.66%. Note: For fee details, please refer to the fund product summary; as of Apr 17, 2026, please refer to the latest fund announcement and fund legal documents. Fee details for Yinhua CSI High Dividend Strategy ETF feeder fund: Class A subscription fee—M < RMB 1 million, 1.20%; RMB 1 million ≤ M < RMB 2 million, 0.90%; RMB 2 million ≤ M < RMB 5 million, 0.60%; M ≥ RMB 5 million, fixed RMB 1,000 per transaction. Class A redemption fee—N < 7 days, 1.50%; 7 days ≤ N < 30 days, 0.50%; N ≥ 30 days, 0. Class C redemption fee—N < 7 days, 1.50%; N ≥ 7 days, 0. Management fee 0.50% per year; custody fee 0.10% per year; Class C sales service fee 0.25% per year. Note: For fee details, please refer to the fund product summary; as of Dec 8, 2025, please refer to the latest fund announcement and fund legal documents. Fee details for Yinhua Hong Kong High Dividend ETF: subscription/redemption fees—authorized subscription and redemption brokers may charge a commission of no more than 0.50%; management fee 0.15% per year; custody fee 0.05% per year; total annualized fund operating expenses 0.48%. Note: For fee details, please refer to the fund product summary; as of Aug 3, 2026, please refer to the latest fund announcement and fund legal documents. Investing involves risk, and caution is required. A fund is a long-term investment tool whose main function is to diversify investments and reduce the individual risks brought by investing in a single security. Funds differ from bank deposits and other financial instruments that can provide fixed return expectations. 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The fund manager, fund custodian, fund sales institution, and relevant institutions do not make any commitment or guarantee regarding fund investment returns. 6. This fund is applied for raising by Yinhua Fund Management Co., Ltd. in accordance with relevant laws, regulations, and agreements, and has been registered with the approval of the China Securities Regulatory Commission (hereinafter referred to as the "CSRC"). The fund contract, fund prospectus, and fund product summary of this fund have been publicly disclosed through the CSRC fund electronic disclosure website at http://eid.csrc.gov.cn/fund and the fund manager"s website at www.yhfund.com.cn. The CSRC"s registration of this fund does not indicate that it makes a substantive judgment or guarantee on the investment value, market prospects, and returns of this fund, nor does it indicate that investing in this fund is risk-free. A MACD golden cross signal has formed, and these stocks are rising well.