Dividend ETFs Offer Widely Varying Yields
Some ETFs Now Outperforming Bank Deposit Rates

As companies increase their shareholder returns, expectations for dividends are also rising. Some stocks are now expected to offer dividend yields higher than bank deposit rates.


According to Eugene Investment & Securities, as of closing on the 11th, among ETFs that have been listed for over a year and have a market capitalization of at least 50 billion won, the highest dividend yield products were identified as "TIGER REITs Real Estate Infrastructure," "TIME Korea Plus Dividend Active," and "KoAct Dividend Growth Active."


Top Dividend Yield ETFs. Eugene Investment & Securities

Top Dividend Yield ETFs. Eugene Investment & Securities

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The dividend yield is the amount of dividends actually paid over the past 12 months divided by the current share price. Among real estate ETFs, TIGER REITs Real Estate Infrastructure ranked first, with a dividend yield of 9.80%, and its dividend has increased by 18.6% compared to a year ago. The total dividend paid over 12 months is 396 won.


TIME Korea Plus Dividend Active recorded a dividend yield of 7.14%, with dividends growing by 80.2% during the same period. Its 12-month total dividend is 2,080 won. For KoAct Dividend Growth Active, the dividend expanded by 100.4% compared to last year, resulting in a dividend yield of 6.24%. The 12-month total dividend is 1,473 won.


In the covered call ETF category, sector-leading products included "TIGER Dividend Covered Call Active," "TIGER US S&P500 Target Daily Covered Call," "TIGER US Tech TOP10 Target Covered Call," and "KODEX US Dividend Covered Call Active." Songcheol Kang, a researcher at Eugene Investment & Securities, explained that these selections were based on three criteria: first, dividends paid over the last 12 months increased compared to a year ago; second, the current dividend yield is high compared to the past; and third, in periods where the dividend yield was similar or higher, a greater proportion of these stocks saw price increases six months later.


Within the KOSPI 200 group, TIGER Dividend Covered Call Active ranked highest with a 12-month total dividend of 4,385 won, a dividend yield of 21.32%, and a dividend growth rate of 229.7%. TIGER US S&P500 Target Daily Covered Call recorded a 12-month total dividend of 1,206 won, with dividends up 10.9% year-on-year and a dividend yield of 10.57%. TIGER US Tech TOP10 Target Covered Call’s 12-month total dividend was 1,569 won, with a dividend yield of 10.77% and a dividend growth rate of 18.3%. KODEX US Dividend Covered Call Active paid a total dividend of 1,180 won, posted a dividend yield of 9.61%, and a dividend growth rate of 6.9%.



Researcher Kang noted, "Last year, the interest rate for one-year fixed deposits at banks dropped as low as 2.5%, but rebounded to 3.5% as of July this year," adding, "If you invest regularly by dividing the amount at the same standard, you can reduce the pricing burden while accumulating monthly dividend ETFs."


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