--- title: "In April, focus on performance, in May, seize dividends; the Dividend Quality ETF has it all covered" type: "News" locale: "en" url: "https://longbridge.com/en/news/282777007.md" description: "April is the earnings report season, and the market tends to favor high-dividend stocks with strong performance certainty. May is the dividend season, where funds are positioned in high-dividend stocks in advance, driving buying pressure. The Dividend Quality ETF (SZ159209) combines performance and dividends to select companies with stable dividends and high ROE. This ETF has been listed for over a year and has conducted ten dividend distributions, with April 15 being the record date for dividends, meeting the dividend conditions" datetime: "2026-04-15T03:19:11.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/282777007.md) - [en](https://longbridge.com/en/news/282777007.md) - [zh-HK](https://longbridge.com/zh-HK/news/282777007.md) --- # In April, focus on performance, in May, seize dividends; the Dividend Quality ETF has it all covered Statistics since 2015 show that the probability of the dividend index rising in April, May, and November is as high as 91%, 73%, and 82% respectively—this is not a coincidence, but rather supported by solid logic. In April, during the earnings report season, the market quickly abandons companies that "tell stories" and collectively focuses on high-quality stocks with strong performance certainty and reliable dividends. From May to July, it is the dividend season for listed companies, with most A-share companies scheduling their dividend payment dates in these months. Funds looking to get in before the ex-dividend date to receive cash dividends will "rush to buy" in advance, directly pushing up the buying pressure on high-dividend stocks. Additionally, as expectations for half-year reports begin to ferment in May, the market's outlook for first-half performance also starts to heat up, further igniting bullish sentiment. In simple terms: **April focuses on performance, May rushes for dividends,** **both are the highlights of dividends.** **China Merchants Dividend Quality ETF (SZ159209)** **covers both performance and dividends.** The answer lies in the index's compilation rules—"dividend" is responsible for dividends, while "quality" is responsible for performance, with each factor performing its own role. The dividend factor addresses the question of "whether to distribute," requiring constituent stocks to have continuous dividends and stable payouts, keeping those companies that occasionally offer high dividends but are unsustainable out of the door. The quality factor addresses the question of "whether there is the ability to distribute." The index not only looks at dividend yield but also examines quality indicators such as ROE (Return on Equity) and profit growth rate. A company can only distribute real cash dividends if it has solid earning capabilities and healthy financial statements, rather than a fleeting moment of "emptying the coffers." During the April earnings report season when the market kills valuations, these companies with strong performance certainty have limited downside and become the direction for capital to gather. It is worth mentioning that this ETF has been listed for just one year and four months and has already welcomed its tenth dividend. Today (April 15) is the ex-dividend date. Maintaining this frequency relies on the fund manager's monthly evaluation of the fund's excess return relative to the performance benchmark and the distributable profits. As long as the net asset growth rate outperforms the benchmark, or the distributable profits are greater than zero, dividends can be distributed. Note that it is "or," not "and." This means that it is not necessary to meet both conditions simultaneously; either one being satisfied can trigger a dividend. This time, the benchmark date is March 31, with a net value of 1.2160 yuan and distributable profits of 173 million yuan—**both conditions are met, so dividends naturally follow.** This dividend distribution amounts to less than 3.5% of the distributable profits. In other words, there is still a large amount of undistributed profits on the books, providing ample ammunition for future dividends. This "frequent small distributions" strategy has the benefit of smoothing cash flow, avoiding the situation where a one-time large distribution leads to a lack of follow-up. **For holders who need regular cash inflows, this rhythm is far more practical than a large annual dividend.** Performance has validated the effectiveness of this logic. **As of April 10, the China Securities Dividend Quality Total Return Index has accumulated a rise of 620.82% since the base date at the end of 2013, while the China Securities Dividend Total Return Index has risen 320.78%, and the Dividend Low Volatility Total Return Index has risen 324.13%.** The annualized return rate difference is nearly 8 percentage points, which means a doubling difference over ten years under the compound interest effect. In the past year, the **Total Return Index rose** **31.01%**, the CSI Dividend Index **6.72%**, and the Dividend Low Volatility only **4.09%**. Especially when the market style leans towards growth, the excess return of quality factors is more pronounced. Risk Warning: Funds carry risks, and investment should be cautious ### Related Stocks - [159209.CN](https://longbridge.com/en/quote/159209.CN.md) - [000922.CN](https://longbridge.com/en/quote/000922.CN.md) ## Related News & Research - [Keep Your Portfolio Safe With This Low-Volatility ETF](https://longbridge.com/en/news/286604877.md) - [Crombie Reit Announces May 2026 Monthly Distribution | CROMF Stock News](https://longbridge.com/en/news/286603129.md) - [VanEck, Grayscale file fresh BNB ETF amendments as race for next altcoin spot ETF accelerates](https://longbridge.com/en/news/286652991.md) - [BNB ETF Could Be Next Big Crypto Breakthrough, Says Bloomberg Analyst](https://longbridge.com/en/news/286639724.md) - [3 high-yielding dividend stocks that retirees can rely on for recurring income](https://longbridge.com/en/news/286804054.md)