Taipei--The Taiwan Stock Exchange (TWSE) has launched a newly designed website for investors that will focus on the merits of Taiwan's equity market, in particular its relatively high dividend yields.
The TWSE said the high yields make shares in Taiwan a good option for Taiwanese retail investors interested in taking advantage of a "small investment plan" similar to a regular savings plan for investors who put their money into mutual funds.
The average cash dividend yield for companies listed on Taiwan's main exchange was 3.96 percent in 2016, trailing only the 3.99 percent seen in the United Kingdom among the world's major equity markets, the TWSE said, citing data compiled by Bloomberg.
Taiwan's average cash dividend yield was higher than in Singapore (3.76 percent), Hong Kong (3.70 percent) and the United States (2.42 percent) as of the end of last year.
The cash dividend yield represents the ratio of the annual cash dividend a company pays to its share price. A higher dividend yield means investors receive a higher return on their investment.
In addition to the cash dividend yield data, the new TWSE website also offers price to earnings (PE) ratios, which refer to a market's valuation.
Taiwan's average PE ratio is third lowest among major Asian markets at 16.5, higher only than the 12.2 PE ratios seen in Singapore and Hong Kong, indicating that Taiwan's stock market is relatively inexpensive and worth investing in, the TWSE said.
The new website also discloses price to book value (PB) ratios, which show how a company is valued. A company is considered to be earning a high return on its assets when it has a relatively high PB ratio.
Taiwan's average PB ratio stood at 1.61 at the end of 2016, higher than Hong Kong's 1.14, Singapore's 1.13 percent and South Korea's 0.91.
Investors can also obtain dividend yields, PE ratios and PB ratios for individual stocks, the TWSE said, describing the new website as a platform that provides timely data to help investors assess their portfolios and devise investment strategies.
All investors have to do is input the stock code of a company on the front page of the website and click next to the stock code box to gain access to the company's basic information and financial data, as well as its stock price history and the date the stock went ex-dividend.
Other information provided includes a stock's daily turnover, institutional buying and selling or margin trading or short selling in the stock, and all material information, the TWSE said.
The website is currently only available in Chinese.
Source: Focus Taiwan News Channel