Hanwha Asset Management said on the 29th that it will raise the monthly distribution per share of the 'PLUS High-Dividend Stock' Exchange-Traded Fund (ETF) from 63 won to 73 won starting in May.
This increase in the distribution will result in a dividend growth rate of 15.9% for the 'PLUS High-Dividend Stock' ETF. As of the closing price on the 25th, the monthly distribution rate is 0.48%, and the annual distribution rate will be 5.77%. The increased distribution will be paid to investors holding the PLUS High-Dividend Stock ETF starting in early June until the 28th of next month. The monthly distribution raised to 73 won will be paid consistently until April next year.
'PLUS High-Dividend Stock' ETF is the largest product among dividend ETFs that invest in domestic stocks. As of the 25th, its total net worth is 680.3 billion won, having surpassed 500 billion won in February and exceeded 600 billion won last month. So far this year, as of the 25th, the net purchasing amount by individual investors has reached 153.7 billion won.
Since 'PLUS High-Dividend Stock' ETF paid its first distribution in 2013, it has maintained an average annual dividend growth rate of 10.1% for 11 years until it introduced monthly distributions last year. Especially after switching to monthly distributions in May last year, it has paid a uniform distribution of 63 won each month. This reflects the confirmed dividends of the stocks held by the ETF at the end of last year and the forecasted dividends for the future.
Considering the reinvestment of dividends, the annualized returns of the 'PLUS High-Dividend Stock' ETF are 19.7% for the past year and 41.6% for the past three years. The five-year return is 140.9%, showing an outperformance of about 90% compared to the KOSPI 200, which recorded a return of 50.6% under the same criteria.
Kim Jeong-seop, head of the ETF business unit at Hanwha Asset Management, noted that "with the recent amendments to the Commercial Act and reductions in dividend tax rates, along with various policies to promote dividends being reviewed, the price trend of high-dividend stocks has become more robust. The 'PLUS High-Dividend Stock' ETF will offer optimal investment opportunities for investors seeking predictable cash flows based on over 10% annual dividend growth and stable monthly distributions."