Goldman Sachs recommends high-dividend Chinese stocks as companies accumulate cash

From South China Morning Post: 2024-06-24 02:07:46

Investors are advised to focus on high-dividend stocks in China’s market due to policies encouraging cash payouts and buy-backs. Companies have amassed 18 trillion yuan in cash and returned at least 2 trillion yuan to shareholders annually. This strategy has outperformed the CSI 300 Index and could ease fiscal pressure on the government. Goldmans Sachs created a portfolio of 40 stocks expected to yield 3% in shareholder return and 5% in free cash flow this year, with a historical total return of 11% over the past three years. Policy changes and market reforms are expected to attract more institutional investments into the equity market.



Read more at South China Morning Post: Goldman says stick to high-dividend Chinese stocks as listed firms build record cash piles