Huatai Securities: High-Dividend Stocks Still Attractive as Defensive Base Allocation in July

Huatai Securities said market risk appetite has remained broadly positive since June, with funds continuing to rotate toward growth themes such as semiconductors, optical modules and the AI computing power supply chain, while high-dividend sectors have generally underperformed, according to 36Kr. The brokerage noted that volatility within growth stocks has increased markedly during the month, bringing back the short-term hedging value of dividend-focused core holdings. Looking ahead to July, Huatai Securities said high-dividend sectors still offer attractive base-allocation value amid crowded growth positioning, valuations at relatively high levels for the year, overseas inflation coming in above expectations, and rising expectations of US Federal Reserve rate hikes. It recommended focusing on defensive, stable dividend plays including banks, power, utilities and transportation.