Kiwoom Asset Management announced on the 12th that the 'KIWOOM High Dividend Exchange-Traded Fund (ETF)' is set to pay its first monthly dividend on the 19th.
This distribution will be subject to investors who purchased the ETF by that day, with 40 won paid per unit. Previously, the structure was to pay dividends based on the end of each month, but this was changed to a 'monthly dividend' method starting from the 15th of last month.
Kiwoom Asset Management explained that it will apply the 15th of every month as the payment date, and if it falls on a holiday, the dividend payment target will be determined based on the previous business day.
The KIWOOM High Dividend ETF, listed in July 2008, is Korea's first high dividend ETF and has operated as the longest-running high dividend ETF for 17 years. This product follows the 'MKF Wealth High Dividend 20 Index' and invests in the top 20 corporations with the highest dividend yields among those listed in Korea.
It provides a stable dividend flow through index design that considers the sustainability and realization of dividends, selecting stocks based on criteria such as four consecutive years of net profit, a dividend payout ratio of less than 90%, and actual cash dividend performance.
According to FnGuide, as of the 11th, the recent one-year return is 49.15%, the highest performance among similarly categorized high dividend ETFs. The total expense is at a low level of 0.19% per year compared to other high dividend ETFs listed in Korea.
A representative from Kiwoom Asset Management noted, 'We expect that this first monthly dividend will provide investors with practical benefits for managing cash flow and reinvestment strategies,' adding that 'monthly dividends bring forward the timing of receiving dividends, making it an efficient structure for pension and long-term investors regarding reinvestment.'