Recently, I have been sorting out some undervalued high-yield stocks in the A-share market and found quite a few. Here's my screening approach: First, the valuation should be at a historical low; second, the dividend yield should be stable above 4% (or at a historical high in the industry); third, the company should have at least 10 years of stable dividend payments; fourth, the fundamentals should be continuously improving; fifth, the industry should hold a leading position.

Taking China Merchants Bank as an example, its dividend yield is about 5%, and its PB ratio is less than 1. Such a valuation indeed hits a historical undervaluation zone. In comparison, Kweichow Moutai has a dividend yield of only 3.6%, below the 4% threshold, but historically, this is already a relatively high dividend payout level for the company.

These types of companies share a common characteristic—they are leaders or top players in their respective fields, with strong risk resistance and ample cash flow. I’d like to hear everyone’s observations: are there any such targets in the market that have been mispriced? It’s worth a deeper research.