KoAct Dividend Growth Active to Pay 2.5% Special Dividend

SAMSUNG Active Asset Management announced on January 23 that the 'KoAct Dividend Growth Active' ETF will pay a special dividend of 2.5%.

The special dividend is being issued due to the ETF's strong performance, driven by the rise in domestic indices. As of now, it has recorded a return of approximately 16.6% year-to-date and about 84.3% over the past year. A representative from SAMSUNG Active Asset Management stated, "We decided to pay a special dividend to share the outstanding results achieved amid the solid upward trend of the domestic stock market with our investors."

The KoAct Dividend Growth Active ETF previously paid a special dividend of 2.5% in July and has been maintaining quarterly dividends at a level between 1.5% and 2.5%.

To receive the special dividend, investors must purchase the ETF by January 28, the day before the ex-dividend date. The ex-dividend date is January 29, and the actual dividend payment is scheduled for February 3.

The KoAct Dividend Growth Active ETF invests in dividend growth stocks where dividends are continually increasing. As shareholder return policies have recently been emphasized as a means to revitalize the stock market, the investment strategy of the Dividend Growth Active ETF, which carefully selects companies with improving cash flows, is also gaining attention. The strategy involves checking whether future profits are increasing and shareholder returns are growing, in order to assess not only dividends but also the capacity for share buybacks. With expected policy changes regarding both dividends and share buybacks, the ETF's ability to select well-balanced stocks stands out.

To capture subtle changes in companies that cannot be detected by simply tracking the index, the active strategy combines quantitative analysis and qualitative individual stock research, enabling a swift response to the ever-changing market environment.

The KoAct Dividend Growth Active ETF has a high allocation to the semiconductor sector, focusing on Samsung Electronics (22.9%) and SK Hynix (14.1%). It also includes 78 blue-chip companies with strong shareholder return commitments, such as Hyundai Motor (5.4%), Korea Carbon (2.3%), HD Hyundai Heavy Industries (2.3%), and Samsung C&T (2.2%). Rather than a 'high dividend' strategy that simply includes stocks with high dividend yields, the ETF focuses on dividend growth companies with improving cash flows and increasing future profits, which can lead to actual share buybacks and expanded dividends. This approach has been evaluated as a key factor in its success.

Ji Sungjin, manager at SAMSUNG Active Asset Management, said, "In the case of typical high-dividend stocks, profits and payout ratios are already high, so even if the dividend income separate taxation bill passes, the increase in dividends may not be significant compared to before. If you invest in dividend growth stocks, where dividends can continue to grow compared to typical high-dividend stocks, you can expect good results."