PLUS High Dividend Stocks Raises Per-Share Distribution by 6.5%... Second Increase This Year

Hanwha Asset Management announced on August 1 that it has raised the monthly per-share distribution of its 'PLUS High Dividend Stocks' Exchange Traded Fund (ETF) to 78 KRW.

As a result of this increase, investors who purchased 'PLUS High Dividend Stocks' by July 29 will receive a monthly per-share distribution of 78 KRW at the beginning of August. This is 5 KRW higher than the previous monthly per-share distribution of 73 KRW, representing a 6.5% increase.

PLUS High Dividend Stocks also raised its monthly per-share distribution from 63 KRW to 73 KRW in May, a 15.9% increase. This is the second increase this year. Compared to the original 63 KRW, the distribution has increased by 23.8%.

The increase in distributions for PLUS High Dividend Stocks is the result of a higher expected dividend yield following the rebalancing (regular component change) conducted in June. During the recent rebalancing, PLUS High Dividend Stocks added Hyundai Motor, Hyundai Elevator, and LX International, while removing K Car, HD Hyundai, and GS Engineering & Construction. The weights of existing holdings were also adjusted based on the newly calculated expected dividend yields at the time of rebalancing.

PLUS High Dividend Stocks conducts rebalancing every June and December, selecting the top 30 stocks with the highest expected dividend yields from among the top 200 stocks by free-float market capitalization that meet liquidity and financial soundness requirements. Changes in expected dividend levels resulting from future rebalancing will continue to be reflected in distribution payments.

As of July 30, PLUS High Dividend Stocks is the largest domestic equity dividend ETF in Korea, with total net assets of 1.5578 trillion KRW. Based on the adjusted benchmark price that takes into account reinvestment of distributions, the returns are 35.5% over the past year, 110.9% over three years, and 195.2% over five years.

Kim Jungsub, Head of ETF Business at Hanwha Asset Management, explained, "Dividend stocks that can serve as alternatives to pensions will become core assets for many investors in the future." He added, "With ongoing discussions to improve institutional conditions, such as the recent amendments to the Commercial Act and the introduction of separate taxation on dividend income, a favorable environment is being created for investing in dividend stocks."

This content was produced with the assistance of AI translation services.