Amid heightened stock market volatility, there is growing interest in dividend stocks that provide stable cash flows. In particular, as companies strengthen their shareholder return policies and high-dividend stocks draw attention, investors appear to be flocking to the 'high dividend + quality' strategy of the TIGER Korea Dividend Dow Jones ETF.
The TIGER Korea Dividend Dow Jones ETF will pay a fixed per-share distribution on the 15th of every month starting in July. Investors seeking stable cash flows are showing significant interest in this product.
The TIGER Korea Dividend Dow Jones ETF is a monthly dividend ETF that diversifies investments across 30 high-dividend blue-chip stocks in Korea. It takes into account not only the 'dividend growth rate' but also the 'dividend yield' and 'quality,' aiming for sustainable growth in addition to absolute dividend size.
The ETF's benchmark index is the 'Dow Jones Korea Dividend 30 Index.' This index applies the investment strategy of the 'SCHD (Schwab U.S. Dividend Equity ETF),' a leading global dividend ETF listed in the United States, to the Korean stock market. It is referred to as the 'Korean-style SCHD (K-SCHD)' ETF. As of May 27, major holdings include KB Financial Group (4.9%), LG Uplus (4.6%), KT&G (4.6%), Hana Financial Group (4.4%), and GS (4.3%).
According to S&P, as of the end of last year, the dividend yield of the TIGER Korea Dividend Dow Jones ETF's benchmark index was 5.4%. The expected per-share dividend at that time (dividend yield x index value) grew by 196.3% compared to 2018, representing an average annual growth rate of about 20%.
The TIGER Korea Dividend Dow Jones ETF undergoes regular rebalancing every June and December. The portfolio is constructed based on criteria such as dividend yield, dividend growth rate, cash flow to debt ratio, and return on equity. Companies that meet these indicators may be newly included in the future.
Jung Hyun Jeong, Head of ETF Management at Mirae Asset Global Investments, stated, "The Korean stock market already has a solid dividend track record, with more than 600 companies paying dividends for over 10 consecutive years, and more than 300 companies maintaining dividends for over 20 years." He added, "Through the TIGER Korea Dividend Dow Jones ETF, which introduces a dividend index methodology proven overseas to the domestic market for the first time, investors can systematically invest in the Korean dividend market."
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