Cathay Pacific Permanent High Dividend (00878), a high-interest ETF with more than 1.8 million shareholders, announced today its latest allotment of 0.4 yuan per beneficiary unit, which is the same amount as the previous quarter. If calculated based...
Cathay Pacific Permanent High Dividend (00878), a high-interest ETF with more than 1.8 million shareholders, announced today its latest allotment of 0.4 yuan per beneficiary unit, which is the same amount as the previous quarter. If calculated based on today's closing price of 21.72 yuan, the single dividend rate is 1.84% and the annualized dividend rate is 7.36%. It is expected to be ex-dividend on November 18 and will be ex-dividend on December 12 Dividends are paid daily.
Jiang Yuteng, manager of Cathay Pacific Sustainable High Dividend Fund, said that the NVIDIA GTC conference and the latest financial reports released by major US technology giants were generally better than expected, which led to strong gains in Taiwanese stocks this week. According to the National Development Council's September boom countermeasure signal, the boom light turned from a green light to a yellow-red light representing expansion, indicating that Taiwan's boom continues to recover.
Jiang Yuteng pointed out that Taiwan stocks have hit new highs repeatedly, driven by global demand for AI, HPC and cloud. Benefited from the strengthening economy and continued strong exports, Taiwan stocks have entered a healthy growth cycle. Although the performance of high-dividend ETFs has been relatively weak this year because financial stocks have not risen as much as low-interest growth stocks such as TSMC and Delta Electronics, as the Federal Reserve restarts the interest rate cut cycle, companies and households will begin to shift from defensive to offensive use of funds.
Jiang Yuteng analyzed that although the growth of some AI server supply chains has paused, according to a survey of 1.2 million companies in the United States on the use of AI, as many as 90% of companies have made plans, and the penetration rate has reached 10%. From this threshold, it is determined that the AI trend is real and is in its early stages. It will only slow down when it reaches 30%. Therefore, the AI supply chain is still rotating and has three major characteristics.
The first feature is high dividend characteristics and affordable fees. Jiang Yuteng pointed out that according to Bloomberg statistics, the dividend contribution of Taiwan's weighted return index in the past 10 years has reached 39.76%, and it has been as high as 58.80% in the past 20 years, showing that dividends play a key role in long-term returns. Since its establishment, 00878 has maintained the important characteristics of low turnover rate and industrial dispersion, allowing retail investors to truly enjoy the advantage of low-cost investment.
The second characteristic is that it has growth potential and masters the dual axes of AI and finance. Jiang Yuteng pointed out that driven by the AI boom, Taiwan's electronics supply chain continues to benefit. In 2025, the annual growth rate of Taiwan's information and communication export orders will reach 33.1%, indicating strong demand for AI servers. Among the 00878 constituent stocks, AI and Apple "double A" stocks account for up to 50.02%, covering stocks with popular themes such as UMC, MediaTek, and ASE, which are expected to benefit from the growth momentum of the semiconductor industry. Next, financial stocks often fall behind to make up for the gains as the interest rate environment improves and profits rebound.
The third feature is that industrial rotation should lay out the three major business opportunities of electronics, finance and telecommunications. Jiang Yuteng pointed out that 00878 takes balanced allocation as the core, covering the three major industries of electronics, finance and telecommunications, and can play a risk diversification effect in the business cycle. According to Bloomberg statistics, the long-term price-to-earnings ratio of US stocks has continued to rise, while Taiwan stocks are still at a relatively low level. In the future, with the promotion of AI and green energy transformation, Taiwan stocks are expected to usher in a new round of evaluation improvement.
Further reading: NVIDIA's market value breaks through $5 trillion, hitting record high! 14 “Hanhui ETFs” on Taiwan stocks took off Quantitative tightening is over! The U.S. Federal Reserve decides to cut interest rates by another 1 percentage point this year and determines to terminate its balance sheet reduction plan in December NVIDIA leads AI optical communications into a three-year golden period! A look at the beneficiary supply chain related to silicon photonics CPO
