The average dividend yield of Taiwan Stock Exchange (TWSE) listed stocks is almost 4 percent, making them more attractive than 10-year US Treasury bonds, Financial Supervisory Commission (FSC) Chairman Thomas Huang (黃天牧) said yesterday.
The 10-year US Treasury yield hit a three-year high of 2.73 percent on Friday.
The average cash dividend yield of Taiwanese stocks is 3.84 percent, Huang told reporters, adding that the average yield rises to 3.96 percent after adding in stock dividends.
Photo: CNA
The TAIEX’s overall performance has been relatively stable, despite the big swings and shrinking market turnover, he said.
Huang was responding to concerns about recent changes in capital flows in the local bourse.
Turnover declined to NT$245.66 billion (US$8.46 billion) on Friday, but rose to NT$299.515 billion yesterday, TWSE data showed.
To date, daily turnover has mostly been above NT$300 billion, but it has been relatively volatile recently due to the Russia-Ukraine war, a surge in domestic COVID-19 cases, and rising inflation and interest rates in the US, Huang said.
Although the TAIEX has fallen below the 240-day moving average, its performance has been stable compared with major bourses this year, he said.
Last year, aggregate pretax profits of companies trading on the TWSE and over-the-counter markets hit a record NT$5.2 trillion, Huang said.
In addition, the nation’s exports jumped 21.3 percent year-on-year to US$43.50 billion last month, rising for the 21st consecutive month, Huang said, adding that this showed that the Taiwan stock market has solid fundamentals.
The TAIEX fell 1.37 percent to close at 17,048.37 points yesterday.
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