As deposit rates decline and stock market volatility intensifies, dividend-paying asset classes are gaining broader appeal among everyday investors. Public data shows that in the first half of this year, the total scale of dividend-focused index funds across the market reached 310.24 billion yuan, a year-on-year increase of 49%. Data from Ant Fortune also reveals that search volumes for keywords like "dividend" and "yield" grew nearly three-fold year-on-year during the same period.

Many young people now self-identify as "dividend collectors," sharing their financial journeys in online investment communities—transitioning from accumulating interest to accumulating dividend payouts. Among Ant Fortune's dividend index fund users, those born after 1995 and after 2000 now account for nearly 40% of the user base, a year-on-year surge of 44%, making them the fastest-growing demographic. Middle-aged users represent a comparable share, with steadier growth. Notably, 90% of dividend index fund investors have allocated across three or more low-correlation asset categories to mitigate volatility risk.

Industry professionals in public funds believe this trend not only reflects young investors' growing emphasis on cash flow and cyclical value but also signals a shift in asset allocation awareness—from singular savings habits to diversified portfolio construction.

The Rise of Dividend Collectors: Index Fund Assets Grow 49% Annually

As the wealth management industry pivots from a scale-driven model to a returns-driven approach, dividends are becoming a vital tool for practicing long-term investing and improving investor experience. On social media platforms, young people are showcasing their dividend collection records: one investor allocated 200,000 yuan into dividend index funds and high-yield bank stocks, planning to use annual payouts to subsidize household expenses. Another post-95 investor put 50,000 yuan into a high-dividend insurance stock, receiving over 2,000 yuan in dividends last year. Despite minor stock price fluctuations, the shares recovered within a year, and the investor remarked, "Compared to a 1% fixed deposit rate at banks, this is quite satisfying."

Wind data indicates that as of June 30, the market-wide scale of dividend index funds stood at 310.24 billion yuan, up 49% year-on-year. Since 2026, dividend index funds have averaged 4.83 distributions per year. Over the past year, the CSI Dividend Index has delivered an average dividend yield of 4.7%. Ant Fortune platform data further shows that as of August 31, users have received 2.6 billion yuan in fund dividends this year, with over 20 million people having received various fund distributions in the past three years.

In contrast, dividend index funds have experienced an average maximum drawdown of 14.6% over the past three years. However, this figure is lower than the 21% maximum drawdown of the CSI 300 Index and the 31.8% drawdown of the ChiNext Index during the same period.

"The core of a dividend strategy is selecting quality companies with consistent payouts and stable cash flow. Such assets may underperform in growth-style markets but demonstrate greater resilience during market turbulence," said a representative from Ant Fortune. The representative also cautioned, "A high dividend yield does not equate to principal protection or guaranteed returns, and fund distributions are not additional profits—they represent periodically realizable cash flow. Investors should remain vigilant about risk and periodically recalibrate their portfolios based on life stages and market conditions."

One post-95 investor shared their approach: "If you want returns higher than deposits, you have to accept some volatility. As long as it's within my tolerance, it's fine. The key is to avoid buying at market peaks. For companies with solid fundamentals, holding long-term takes pressure off the stock price, and you still earn cash flow every year."

In fact, the stability and growth potential of dividends deserve more attention than the absolute level of a single dividend yield. According to Ant Fortune, the "Dividend+" section launched this year aims to help users identify dividend index funds with historically consistent distributions, lower volatility, and long-term appreciation potential. The section filters products based on index dividend yield, payout frequency, and returns, with continuous tracking through in-depth research.

Accumulating While Allocating: Dividend Collectors Hold Three or More Asset Classes on Average

No longer content with Yu'e Bao returns, young investors are increasingly embracing moderate volatility in exchange for a relatively substantial and sustainable cash flow—a consensus taking shape among "dividend collectors." The transition from saving interest to collecting dividends, and from passive saving to diversified allocation, represents a quiet evolution in financial mindsets among the younger generation.

Ant Fortune data shows that 90% of dividend index fund holders have allocated to three or more low-correlation asset categories. Instead of relying on a single financial tool, these investors are constructing their own basket of cash flow systems: Yu'e Bao for readily accessible funds, bond funds as a stable foundation, an annuity insurance policy for retirement savings, dividend funds for regular distributions, and surplus capital for higher-risk equity investments.

Platform data reveals that from early 2021 to the end of 2025, holding only aggressive assets like ChiNext index funds over five years yielded a return of approximately 7.9%, with a maximum drawdown of 24.3%. However, by allocating 50% to dividend low-volatility funds as an equity anchor and pairing them with growth-oriented equity assets, returns climbed to 43.1% over the same period, while the maximum drawdown fell to 9%.

This illustrates that aggressive assets offer high upside but deep drawdowns in choppy markets, while dividend low-volatility assets may not generate outsized returns but provide robust downside protection. Combining both can effectively smooth overall portfolio volatility.

Wang Zengwu, director of the Wealth Management Research Center at the National Institution for Finance & Development, commented that against a backdrop of persistently declining interest rates, dividend index funds—with their defensive attributes of high yields and low valuations—are becoming the equity anchor for young investors building "barbell strategies."

"In a volatile market, what matters most is being able to hold positions without losing sleep. Fund dividends aren't extra returns per se, but stable cash flow offers greater value across a young person's life cycle—whether spent or reinvested for compounded long-term growth, amplifying the effects of time. From saving interest to collecting dividends, and from single savings to diversified allocation, young people's wealth management philosophies are becoming increasingly rational."