Referring to the question of “whether dividend stocks are still worth allocating” discussed in the market recently, Liu Xinyu, co-general manager of the public investment department of Huibaichuan Fund, pointed out that although many investors will oppose dividend stocks and growth stocks, in fact, dividends and growth are not two investment styles that “go hand in hand”, but rather an inevitable step for a company or industry at different stages of development. However, when return on investment is the fundamental intention, there is no difference in the logic of seeking value between dividend stocks and growth stocks. Every company has a relationship between value and price. Whether to buy a valuable company at a reasonable price is a reflection of actually being able to obtain compound returns over a long period of time. “Whether a company dividends the money it earns each year to shareholders or reinvests dividends, the sole basis for decision-making should be whether this move can maintain or increase shareholder returns.” Liu Xinyu said, “As long as the company can operate stably, it can generate good returns on cash flow for shareholders. As long as this return is higher than other investment options, the company is still an attractive asset to invest in at this stage. Therefore, there is no such thing as saying that if you buy and grow, the dividends are worthless. Instead, we need to see if so-called growth stocks actually have performance support, or whether their valuation matches growth.”

Referring to the question of “whether dividend stocks are still worth allocating” discussed in the market recently, Liu Xinyu, co-general manager of the public investment department of Huibaichuan Fund, pointed out that although many investors will oppose dividend stocks and growth stocks, in fact, dividends and growth are not two investment styles that “go hand in hand”, but rather an inevitable step for a company or industry at different stages of development. However, when return on investment is the fundamental intention, there is no difference in the logic of seeking value between dividend stocks and growth stocks. Every company has a relationship between value and price. Whether to buy a valuable company at a reasonable price is a reflection of actually being able to obtain compound returns over a long period of time. “Whether a company dividends the money it earns each year to shareholders or reinvests dividends, the sole basis for decision-making should be whether this move can maintain or increase shareholder returns.” Liu Xinyu said, “As long as the company can operate stably, it can generate good returns on cash flow for shareholders. As long as this return is higher than other investment options, the company is still an attractive asset to invest in at this stage. Therefore, there is no such thing as saying that if you buy and grow, the dividends are worthless. Instead, we need to see if so-called growth stocks actually have performance support, or whether their valuation matches growth.”