Public fund dividend wave continues: some funds have already distributed dividends 7 times this year! Quantitative products emerge as a new force

On February 25, Invesco Great Wall, J.P. Morgan, Guotai Fund, and several other public fund companies announced that some of their funds will distribute dividends soon. As we enter 2026, the enthusiasm for dividend distribution among public funds is high. Besides the more common dividend and high-dividend funds, other types of thematic equity funds are also actively distributing dividends.

Wind data shows that as of February 25, based on dividend distribution dates, some funds have already distributed dividends seven times this year. Notably, among the funds with the most frequent dividends, quantitative funds are particularly active.

Moreover, new fund launches are also actively focusing on dividend and high-dividend funds. Industry insiders believe that regulating dividend behavior to enhance the long-term appeal of products is a strategy many managers are using to address issuance difficulties and respond to policy requirements. An increasing number of equity funds are also increasing their dividend payouts.

Some funds have already distributed dividends seven times this year, with quantitative funds leading in activity

On February 25, Invesco Great Wall, J.P. Morgan, Guotai Fund, and other institutions issued further notices regarding dividend distributions for some of their funds. Notably, according to Wind data, Xinhua Select Dividend A has already distributed dividends seven times this year; Western Lide Specialized and Innovative Quantitative Stock Selection A and C, Huatai-PineBridge Dividend Quantitative Stock Selection A and C, Western Lide Quantitative Preferred A and C, among others, are also among the top in dividend frequency.

Fund dividend statistics from the beginning of the year to now (based on dividend distribution dates, as of February 25)

Source: Wind

It is worth noting that quantitative funds have rarely appeared among the large group of funds distributing dividends previously. However, with market volatility becoming more apparent, industry insiders say these funds will periodically distribute dividends. This helps investors “lock in gains” and also responds to policy calls.

An industry insider told the Daily Economic News that even some institutional investors hope to enjoy tax benefits through fund dividends, but their target products are mainly fixed-income funds, with a smaller proportion of active equity funds.

Since last year, the number of dividend distributions by equity funds has increased significantly. So far, among the top products in dividend frequency, not only quantitative funds but also most of the funds are equity funds.

Wind data shows that, within the specified dimensions, all of the top seven funds in cumulative dividend frequency are active equity funds, with only one pure bond fund appearing at the 12th position. Looking at the top 100 funds by cumulative dividend frequency, pure bond funds are few. While bond funds still lead in total dividend amount, they are no longer the main players in terms of frequency.

Institutions focus on dividend fund issuance, with some products ending fundraising early

Dividends from funds mainly come from the income generated by their asset portfolios. Whether from dividends, interest, or capital gains, these are the sources of fund dividends. Therefore, choosing stable dividend assets is fundamental to creating dividend conditions, and fund companies are actively developing such products.

The reporter notes that since 2026, several high-dividend and high-yield funds have launched fundraising, with some ending early, such as the E Fund CSI All Share Dividend Quality ETF.

Industry insiders believe that the long-term logic of investing in dividend assets lies in their stable cash dividends, which provide continuous cash flow. Coupled with market volatility-driven passive gains, investors can potentially achieve dual returns.

Wind data shows that since 2026, among dividend theme funds, Huashang Hong Kong Stock Connect Value Return has achieved a 15.93% return so far this year; 12 products, including Bank of Communications Regular Payment Double Income Balance and Wanguo Dividend Select USD, have had over 10% interval returns. The average interval return of all dividend theme funds is 4.47%, surpassing the growth of the Shanghai Composite Index during the same period.

In terms of capital flows, since the beginning of the year until February 24, among dividend theme ETFs, Huatai-PineBridge Dividend Low Volatility ETF received nearly 3.298 billion yuan in net inflows; E Fund CSI Dividend Low Volatility ETF received nearly 1.523 billion yuan; China Merchants CSI All Share Dividend Quality ETF received nearly 968 million yuan.

Dividend index products often focus on high-dividend-yield companies that consistently pay dividends. Dividends are a tangible return from listed companies to investors; the dividend yield is the ratio of dividends to stock price. With stable stock prices, higher dividends mean higher yields. This aligns with the risk-averse needs of some institutional investors and has continuously driven the growth of such products.

Li Chunyu, fund manager of Rongzhi Investment FOF under PAI PAI Network, believes that the industry is shifting from scale expansion to “investor benefit prioritization.” Dividends have become key to enhancing the holding experience. The growth of passive products has increased dividend payouts. Additionally, the expansion of broad-based ETFs, mature dividend mechanisms, and the long-term capital needs of insurance funds for stable cash flows are jointly promoting dividend growth.

Daily Economic News