Samsung Asset Management announced on the 18th that it will completely overhaul its representative dividend exchange-traded fund (ETF), KODEX High Dividend, launching it anew as 'KODEX High Dividend Stocks.' The index methodology will shift from focusing on small and mid-cap stocks to large, high-quality stocks, with the name changing starting from the 25th.
The biggest change is in the method of selecting stocks. In the past, stocks were chosen based on the previous year's dividend yield, but after the overhaul, stocks will be selected based on the expected dividend yield for the next fiscal year.
Samsung Asset Management noted, 'Based on past data analysis, when applying the expected dividend yield for the next fiscal year, we recorded an average excess revenue of about 3.8% compared to the previous year's dividend yield,' adding, 'The expected dividend yield of KODEX High Dividend Stocks has also been revised upward to between 5% and 6%.''
The stock weighting will also change from an equal-weighted selection of 50 stocks to a concentrated selection of 20 stocks. Samsung Asset Management expects that by focusing on companies showing high expected dividend yields among high-dividend stocks, it will be able to achieve stock price increases in a rapidly rising KOSPI index environment.
The sectors included in KODEX High Dividend Stocks will also diversify beyond financial stocks. Representative stocks include Hyundai Elevator, Kia, DB Insurance, SK Telecom, and Cheil Worldwide.
Samsung Asset Management determined that, for financial stocks including banks, additional gains may be difficult as stock prices have already risen substantially due to shareholder return expectations since last year. In contrast, they see potential for further gains in high-dividend stocks excluding banks.
Ma Seung-hyun, a manager at Samsung Asset Management, said, 'KODEX High Dividend Stocks can be a suitable choice for investors seeking both dividends and growth potential, as it is an ETF that is responsive to market conditions.'