Samsung Active Asset Management said on the 23rd that it will change the KoAct Dividend Growth Active exchange-traded fund (ETF) dividends policy from quarterly to monthly.
With this change in the dividends policy, the KoAct Dividend Growth Active ETF will be managed with a goal of paying dividends of about 0.5% each month.
According to Samsung Active Asset Management, the change was pursued to meet demand from investors seeking stable monthly cash flow and in line with market conditions that have recently shifted toward monthly dividends ETFs.
Earlier this year, the KoAct Dividend Growth Active ETF posted a return of about 39.9%. Long-term returns were 43.5%, 62.9%, and 111.5% over 3 months, 6 months, and 1 year, respectively.
Accordingly, special dividends of 2.5% were paid in July last year and on Jan. 1 this year, and Samsung Active Asset Management plans to consider additional special dividends if the ETF's returns outperform the market.
The ETF includes corporations that pursue shareholder-return policies such as increasing dividends and buying back and canceling treasury shares.
Its holdings include ▲Samsung Electronics preferred (24.4%), ▲SK hynix (15.4%), ▲Hankuk Carbon (3.6%), ▲KONA I (2.2%), ▲Daou Data (2.1%), and ▲Hyundai Motor (2.1%) among 69 stocks, with semiconductors having the largest industry weight. The ETF's total management fee is 0.5% per year.
Ji Seong-jin, a manager at Samsung Active Asset Management, said, "Unlike typical high-dividends stocks that already have high earnings and dividends payout ratios, attention should be paid to dividends growth stocks that can increase dividends based on earnings growth," adding, "Beyond semiconductors, there will be many opportunities for share-price revaluation stemming from expanded shareholder returns in industrials with high earnings visibility and in undervalued consumer stocks."