Shanghai Stock Exchange Dividend Index
The Shanghai Stock Exchange Dividend Index (SSE DI) is a stock market index that tracks the performance of publicly traded companies in Shanghai that pay dividends. The index was first launched in October 2011 as a benchmark to measure the performance of Chinese listed companies with a focus on dividend payments.
The SSE DI is calculated on a market capitalization weighted basis using the daily prices of constituent stocks. Constituent stocks are identified as those listed on the Shanghai Stock Exchange that satisfy dividend eligibility criteria which include having a three-month dividend payouts and dividend payout ratio of 5% or more.
The SSE DI is intended to act as a performance benchmark of stocks that pay dividends, providing investors with an alternative measure of stock performance. The index is composed of the top 90 stocks in terms of liquidity and dividend yield, which are selected from the top 200 A-share companies based on dividend yield. These companies must have reported a dividend during the most recent three-month period and must have reported a dividend payout ratio of 5% or more over the same period.
The index is updated on a daily basis. This means that the stocks included in the index will change from day to day depending on their dividend yield and liquidity. Therefore, the SSE DI provides investors with a dynamic and ever-evolving source of information about dividend stocks traded on the Shanghai Stock Exchange.
In addition to being a benchmark for the performance of dividend paying stocks, the SSE DI also serves as a useful comparison of dividend yield across different sectors. This can enable investors to more effectively assess their potential returns and risk when investing in dividend-paying stocks.
Overall, the SSE DI provides investors with an useful tool by which to measure the performance of dividend-paying stocks traded on the Shanghai Stock Exchange. By covering only top-quality companies and their dividends, the index provides investors with a reliable source of information to evaluate investment options.