Stable Monthly Dividend Investment Possible Through Personal and Retirement Pension Accounts
KB Asset Management announced on the 20th that it has listed the monthly dividend type exchange-traded fund (ETF) 'KBSTAR Global Realty Income ETF,' which simultaneously invests in the US Realty Income, the epitome of monthly dividend REITs, and Macquarie Infrastructure, the No. 1 infrastructure fund in Korea.
As of last year, the annualized dividend yields of Realty Income and Macquarie Infrastructure were approximately 5.3% and 6.2%, respectively, characterized by high dividend yields to the extent that they are called 'dividend aristocrats.'
With the recent drop of regular bank deposit interest rates to the 3% range annually, investors looking for another pension investment option have gained a new choice with the 'KBSTAR Global Realty Income ETF.' This ETF boasts an annualized dividend yield of over 4%, so a strong response is expected.
The underlying index of the 'KBSTAR Global Realty Income ETF' is the 'Solactive Global Realty Income Index.' This index includes 18% each of the representative dividend growth stocks 'Realty Income' and 'Macquarie Infrastructure,' along with a total of 10 stocks, including eight growth-type global REITs such as American Tower, Crown Castle, and Prologis.
US Realty Income is the world's largest commercial REIT and a representative growth-type REIT. It owns about 13,000 retail properties in the US and Europe. It has paid monthly dividends for the past 54 years and has steadily increased dividends for more than 25 years.
Leveraging this dividend appeal, it is also receiving strong love from Korean individual investors investing overseas. As of the 14th, US Realty Income ranked 11th in net purchases of overseas stocks by domestic individual investors over the past year. It is by far the No. 1 among listed REITs.
Macquarie Infrastructure is the largest listed infrastructure fund in Korea with a market capitalization of about 5.3 trillion KRW and holds a high credit rating of 'AA.' Since its listing on the Korea Exchange in 2006, it has led domestic social infrastructure projects and invested a total of 2.5 trillion KRW in 18 domestic infrastructure projects. Since its first distribution in 2003, its average annual dividend growth rate is about 5.4%.
Yook Dong-hwi, Head of ETF Marketing at KB Asset Management, said, "We composed the portfolio with dividend growth REITs and infrastructure stocks that are expected to see both stock price appreciation and dividend expansion along with industrial growth," adding, "It would be good to hold this together with dividend growth ETFs like SCHD, which are based on stocks, from an asset allocation perspective."
Meanwhile, for investors who manage personal pension and retirement pension accounts through banks or insurance companies or are unfamiliar with ETF trading, the previously launched KB Korea REITs Infrastructure Fund can be used for pension investment. Launched in November 2022, this fund selectively invests in Macquarie Infrastructure and high-quality domestic REITs. As of the 14th, its 3-month return reached 7.52%.
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