Core Viewpoint - The article discusses the significant increase in the valuation of dividend indices following the annual report updates, attributing this rise to the use of static price-to-earnings (PE) ratios by the China Securities Index, which contrasts with the rolling PE ratios used by other platforms [3][10]. Valuation Changes of Dividend Indices - The valuation of various dividend indices has seen notable changes, with the PE ratios increasing significantly post-annual report updates. For instance, the Dividend Index's PE rose from 7.19 to 8.71, marking a 21.14% increase, while the dividend yield remained stable at 7.10% [7]. - The China Securities Dividend Index also experienced a PE increase of 22.46%, from 7.88 to 9.65, with a slight decrease in dividend yield [7]. - The low-volatility dividend indices showed a lower increase in PE ratios, indicating a more stable valuation compared to single-factor dividend indices [8]. Industry and Sample Performance - The analysis of the China Securities Dividend Index reveals that 58 out of 100 sample companies experienced a decline in profit year-on-year, with an average profit drop of 12.99% [16][17]. - Revenue performance was similarly affected, with 60% of the sample companies reporting a decline in revenue, averaging a decrease of 3.89% [17]. - Industries facing profit declines include coal, transportation, steel, media, and construction materials, while banking and public utilities showed stable profit growth [19][20]. Conclusion on Dividend Indices - The overall valuation increase in dividend indices is primarily driven by the decline in profits among key sectors like coal and steel, leading to a significant rise in PE ratios. Despite this, the indices maintain a stable profit outlook, suggesting that investors can hold onto these indices without excessive concern [20][21].