Global X Hang Seng High Dividend Yield ETF declared a dividend of HKD 1.6 per share, with high dividend strategies becoming a safe haven for investment during the interest rate cut cycle

According to the Zhitong Finance APP, Huang Yimin, an analyst at Future Asset Global X, stated that against the backdrop of rising global interest rate cut expectations and increasing market volatility, high dividend strategies are becoming an important choice for investors to cope with uncertainty due to their attractive dividend yields and lower volatility. The Global X Hang Seng High Dividend ETF (03110) announced on September 9 that it will distribute a dividend of HKD 1.6 per share to holders, with the ex-dividend date set for September 24 and expected to pay dividends on September 30.

This dividend plan stems from the strong performance of the Hang Seng High Dividend Index it tracks. As of August 29, the index's dividend yield was 6.9%. After the annual rebalancing in June, the index's dividend yield increased to 7.8%, and the subsequent decline in dividend yield was due to stock price growth. Since 2024, both the index's per-share dividend and stock price have maintained a stable upward trend.

The macro environment is also boosting the attention on high dividend strategies. Recent U.S. labor data has shown weakness, and the Federal Reserve has released dovish signals, reinforcing market expectations for the initiation of a rate cut cycle in September. In this context, high dividend assets have become an important direction for capital seeking refuge due to their provision of stable cash flow and relatively low volatility.

For the mainland Chinese market, low bank deposit rates and bond yields may prompt more household savings to flow into the stock market, with high dividend products likely being among the first beneficiaries. Additionally, strong policy support in China also underpins high dividend strategies: the People's Bank of China has established a fund for increasing repurchase and relending, which is expected to stimulate corporate buyback behavior, while the "Nine National Policies" launched in 2024 also promote more stable and frequent corporate dividend payments.

In terms of component stock performance, the latest earnings season shows that companies with high dividend component stocks generally have a strong willingness to pay dividends. Among the 50 index component stocks, 42 have announced interim dividends for the first half of 2025, with 30 (accounting for 71%) maintaining or increasing their per-share dividends year-on-year. Based on the interim dividends for the first half of 2025 and the dividends for 2024, the per-share dividend (DPS) has increased by 7.9% year-on-year over the past twelve months. In addition to cash dividends, some companies are also increasing shareholder returns through stock repurchase programs