The dividend yield of banks is the highest in the whole industry, and the banking sector is both the part with the lowest valuation and the part with the highest dividend yield. Since 2004, the average dividend yield of the banking industry has reached an astonishing 4%. The most terrible thing is that the dividend yield is relatively stable, exceeding 4% in four years, and the annualized dividend yield in 20 16 years has reached an astonishing 5%. The P/E ratio of bank stocks is generally not more than 15 times that of bull market and about 5 times that of bear market. The dividend yield of bank stocks is very high, generally around 50% of net profit. For example, the annual dividend of China Construction Bank is about 0.3 RMB. Calculated at 50% of the P/E ratio of 10, that is, no matter whether the stock price rises or falls, the capital can be recovered in 20 years' investment cycle, which is more cost-effective than investing in real estate.

We should know that the annualized rate of return on real estate investment is around 2%. Compared with bank stocks, the price-earnings ratio of ten times is relatively high. If you invest in bank stocks for a long time, the dynamic P/E ratio of your account should be 7 times or even lower, then you will recover the principal in less than 14 years. In the long run, the profit is considerable. 4 What is the concept of dividend yield%? It is equivalent to a fixed one-year wealth management product or a deposit with an annual interest rate of 4%, and your income in the bank is 4%. Besides, the stock is still rising, and you can earn profits from the price difference. Holding it for a long time will have a good return.

At present, the thunder of A shares continues, and more and more stocks are delisted. The fund seems to be aware of this change and is accelerating the withdrawal of junk stocks of SMEs. Similar to Maotai and Ping An Value Blue Chip, it has also stepped out of the independent rising market. This trend will continue in the future, and banking stocks will definitely become the darling of big funds. Pursue low risk, strong defensive, and can hold bank shares for a long time. You can outperform most wealth management products on the market with a high probability. Look at the attributes of bank stocks, low P/E ratio and high P/E ratio. Generally speaking, the profitability is strong, and the stock price is close to the net assets, but it has a fatal weakness and its growth is not strong.

Most of the targets pursued by the market are growth stocks, resulting in relatively small opportunities for bank stocks and little possibility of obtaining excess returns. However, from the perspective of dividends, the dividends of most bank stocks are over 5%, and high dividends can basically exceed most wealth management products. Therefore, friends who pursue low risk can choose banking stocks. In addition, several bank stocks with relatively good growth are PA and ZS. Therefore, the valuation given by the market is higher than that of other bank stocks, and I wish you a smooth investment.