Buying the Dip in Taiwan Stocks Until Your Account Hits Zero? Jan Hsuan-I Recommends 00929: 'It Rises and Pays Dividends' – Dividends Serve as Both Shield and Reinvestment Fuel

Taiwan's stock market plummeted 3,000 points in July, leaving many investors who added positions at lower levels facing depleted funds and exhausted emergency reserves. Financial program host Jan Hsuan-I emphasizes that stable cash flow is crucial during market crashes. She recommends including high-dividend ETFs that can rise in price while paying dividends, such as Fu-Hua Taiwan Technology High Dividend (00929). Since the beginning of the year, 00929 has delivered a return exceeding 60%, outperforming both the broader market and TSMC. It has also distributed a dividend of NT$0.38 per share for two consecutive months, offering an annualized dividend yield above 15%—a highly attractive proposition. Stable dividends provide psychological comfort and can serve as capital for additional investments during market downturns.

During this sharp correction, although many investors followed the long-term strategy of 'buying more when prices fall,' Jan Hsuan-I has recently received numerous messages from followers stating they've 'run out of funds' or 'used up their living expense reserves.' One investor shared that starting to average down from July 17, they continued to face falling prices, resulting in insufficient cash and mounting paper losses, leading to immense psychological stress and impaired decision-making.

Jan Hsuan-I stresses that during periods of extreme market volatility or low cash reserves, stable cash flow plays a critical defensive role. By incorporating high-dividend ETFs into portfolios, investors gain steady income, reducing monthly living cost pressures. Moreover, dividends received during market lows can be reinvested, helping avoid the risk of running out of capital.

However, traditional high-dividend ETFs often suffer from 'earning dividends but losing on price depreciation.' To avoid this, Jan Hsuan-I advises selecting instruments that 'can rise in price and pay dividends.' Among top performers this year in both returns and dividends is Fu-Hua Taiwan Technology High Dividend (00929). Despite significant market turbulence in Q3, 00929 achieved a year-to-date return (as of July 31) exceeding 60%, ranking first among high-dividend ETFs. This performance surpasses not only TSMC and 0050 but also some actively managed Taiwan stock ETFs. Jan describes 00929 as a 'high-dividend ETF disguised as an actively managed fund.'

Thanks to the strong earnings recovery of tech stocks, 00929 maintained its latest dividend at NT$0.38. Based on its closing price of NT$26.94 on July 31, the estimated annualized yield reaches 17%, making it highly appealing. Jan reminds investors that the ex-dividend date is August 19, with payouts scheduled for September 14. Investors must purchase shares by August 18 at the latest to qualify for the dividend.

Analyzing why 00929 breaks the mold of traditional high-dividend ETFs stuck in range-bound trading, Jan attributes its success to its focus on 'AI growth and tech dividends.' Its stock selection logic doesn't merely chase high dividend yields but carefully screens technology-sector companies with strong profitability, consistent dividend records, and growth potential. During bull markets, capital gains are possible; during volatility, component stocks’ dividend income helps build a 'dividend moat' ensuring stable payouts. Notably, in late 2025, the stock selection mechanism will be upgraded to pursue growth in the first half and shift toward income in the second half, further enhancing overall performance. Currently, 00929 has surpassed NT$130 billion in assets under management, with over 430,000 beneficiaries, making it one of Taiwan’s largest tech-focused high-dividend ETFs.

Following this severe market correction, Jan reiterates the importance of securing stable cash flow in daily investment practices. Consistent dividends reduce stress from market swings and preserve room for strategic positioning during downturns. Simultaneously, capturing the long-term growth trend of the technology sector increases the potential for higher overall returns once the market stabilizes.