Hanwha Asset Management Raises PLUS High Dividend Stocks ETF Monthly Distribution to 103 Won

Hanwha Asset Management has decided to set the July monthly distribution for the ‘PLUS High Dividend Stocks’ exchange-traded fund (ETF) at 103 won per share, continuing its trend of increasing distributions.

According to Hanwha Asset Management on July 29, this July distribution is approximately 19.8% higher than the previous month’s 86 won, and about 32.1% higher than July of the previous year, which was 78 won. Compared to May 2024, when the fund transitioned to monthly distributions and paid 63 won per share, this represents an increase of approximately 63.6%.

The distinguishing feature of the PLUS High Dividend Stocks ETF lies in its long-term track record of distribution growth. It is the largest and longest-running high dividend ETF managed by Hanwha Asset Management, earning its place as a steady seller. Beyond simply offering a high dividend yield, the distribution itself has consistently grown. On an annual basis, the distribution grew from 260 won in 2013 to 866 won projected in 2025. Over the 12-year period, the compound annual growth rate (CAGR) is approximately 10.5%.

Even as the distributions have risen, the principle governing the distribution source has been upheld. The PLUS High Dividend Stocks ETF uses only stock dividends from its holdings as the basis for distributions. It does not boost monthly distributions by selling underlying assets for capital gains or by paying out more than distributable profits. The July distribution adjustment was also determined based on expected stock dividends from the holdings. This approach reflects not only monthly cash flow but also a long-term, total return perspective in the ETF’s management principle. When comparing monthly dividend ETFs, it is important to consider not only the size of the distribution or payout ratio, but also the distribution sources, long-term trends, and total returns reflecting changes in market price.

The PLUS High Dividend Stocks ETF can be used as an option for long-term investors who utilize retirement pension and ISA accounts, as it provides the ability to monitor not only the current level of distributions but also the long-term profitability, dividend policy, and shareholder return strategies of its portfolio companies.

Geum Jeongseop, head of the ETF Business Division at Hanwha Asset Management, stated, “There are many products with a high immediate distribution yield, but few that have shown long-term distribution growth. For monthly dividend ETFs, investors should consider not just the size of the distributions but also the source and sustainability of those distributions,” adding, “The PLUS High Dividend Stocks ETF will continue to pursue both monthly cash flow and long-term dividend growth, while maintaining the principle of using only stock dividends from its holdings as the source of distributions.”

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