Eight Key Points for Trading High Dividend Payout Stocks

Since the inception of China's stock market, high dividend payout plans (interim and annual reports) have been a classic target for speculation. Although regulatory changes later reduced such opportunities, periodic炒作 still occurs occasionally. Frankly, the primary purpose of high dividend payouts is simply share capital expansion—yet the Chinese market has always had a soft spot for it.
Whenever annual or interim reports announce high payout plans, they attract speculative capital, with many stocks achieving 100% "filling the权" (price recovery post-dividend).

Stocks that successfully fill the权 are either market hotspots or demonstrate sustained high earnings growth—the most basic criteria. For retail investors facing information asymmetry, how can one identify opportunities and risks in high payout stocks?

Based on years of observation, here are eight key points:

1. Target low cumulative gainers, avoid steeply risen stocks: Heavy gains often lead to profit-taking by big players.

2. Prefer new over old stocks: IPOs and recent listings usually have greater upside.

3. Small caps over large caps: Prioritize companies with smaller total share capital.

4. Growth over losses: Focus on profit-growing firms.

5. Booming sectors over declining ones: Choose industries with strong momentum.

6. Concentrated over dispersed holdings: Favor stocks with reducing shareholder numbers.

7. Substance over hype: Companies with core business growth are preferable.

8. Buy support, not chase highs: Enter at technical support levels, avoid盲目追涨.

These points are personal observations, not authoritative rules, and are仅供 reference. Market experience requires accumulation and isn't universally applicable. Investors should develop strategies tailored to their own needs.