Mirae Asset 'TIGER US Dividend +3% Premium Dow Jones ETF' Distribution Record Date Change

Mirae Asset Global Investments announced on the 8th that it will change the dividend payment record date for the ‘TIGER US Dividend +3% Premium Dow Jones ETF’ to the 15th of each month.

The dividend payment record date for the ‘TIGER US Dividend +3% Premium Dow Jones ETF’ will be changed from the last business day of each month to the 15th of each month (or the preceding business day if the 15th is not a business day). The August dividend will be paid based on the last business day of the month as before, and from the September dividend onward, payments will be made based on the 15th of each month.

The ‘TIGER US Dividend +3% Premium Dow Jones ETF’ is a US dividend ETF that pursues high monthly income returns using a covered call strategy. It invests in 100 high-quality, high-dividend companies included in the US Dividend Dow Jones Index. The annual target distribution yield is over 6%, and since its listing in June 2023, the current annual average distribution yield is 6.5%.

In particular, the ‘TIGER US Dividend +3% Premium Dow Jones ETF’ operates the call option selling ratio at around 15% using the ‘+3% Target Premium’ strategy. Unlike typical covered call ETFs that sell 100% call options and limit returns when stock prices rise, this ETF adjusts the option selling ratio to follow stock price increases. Through this, it shows more stable stock price growth compared to conventional covered call ETFs. The price per share of this ETF, which was 9,940 KRW at listing, is currently 11,005 KRW, recording a stock price return of 10.7%. Dividends have also increased from 56 KRW in July 2023 to 68 KRW in July 2024, demonstrating dividend growth.

With this change in the dividend payment record date, investors in US dividend ETFs are expected to be able to build diverse monthly dividend portfolios using TIGER US dividend ETFs such as the ‘TIGER US Dividend +3% Premium Dow Jones ETF,’ which offers high monthly dividends and stable stock price growth. When invested together with ETFs like the ‘TIGER US Dividend +7% Premium Dow Jones ETF (458760),’ which pays dividends at the end of the month, investors can create a monthly dividend portfolio that pays dividends twice a month. When dividend payment cycles are staggered biweekly, investors can stabilize their overall portfolio and develop various reinvestment strategies.

Han Yoo-jin, manager of the Strategic ETF Management Division at Mirae Asset Global Investments, said, “The ‘TIGER US Dividend +3% Premium Dow Jones’ offers a high distribution yield in the 6% range annually and allows participation in the stable stock price growth of US dividend stocks.” She added, “With the change in the dividend payment record date, the TIGER US dividend ETF biweekly dividend solution will enable the creation of monthly dividend portfolios that diversify cash flow.”