70 Won Per Share, Approximately 0.54% Monthly Distribution Yield
Shinhan Asset Management announced that the SOL Dividend Payout Ratio Top Picks Active ETF, which proactively reflects the market's heightened focus on 'dividend payout ratio' amid the current tax law revisions, will pay its first monthly dividend on March 3, 2026.
The scheduled distribution for this payout is 70 won per share, with a monthly distribution yield of approximately 0.54%, and an annualized yield of about 4.3%.
The SOL Dividend Payout Ratio Top Picks Active ETF is the first ETF in Korea to use the dividend payout ratio-which indicates how much of a company's earnings are returned to shareholders-as its core investment criterion.
According to the 2025 tax revision bill, companies that have not reduced their cash dividends compared to the previous year and have a payout ratio of 40% or higher are classified as "excellent dividend" companies. Companies with a payout ratio of 25% or higher and that have increased their cash dividends by more than 10% compared to the previous year are classified as "dividend effort" companies. The SOL Dividend Payout Ratio Top Picks Active ETF has constructed its benchmark methodology so that only companies meeting these dividend payout criteria can be included in its portfolio.
The ETF’s portfolio currently consists of 23 stocks, including Woori Financial Group, Kia, KT&G, Samsung Fire & Marine Insurance, Hyundai Elevator, Samsung Securities, NH Investment & Securities, BNK Financial Group, and GS. Due to the nature of active ETFs, the portfolio’s constituents and their weightings may change during the management process.
Kim Junghyun, Head of ETF Business at Shinhan Asset Management, stated, "Recently, we newly included SL, Seoul Guarantee Insurance, and SOOP in our portfolio, as they have significantly raised their payout ratios and now meet the requirements for separate taxation on dividend income." He added, "In a phase where corporate shareholder returns are being strengthened, we can timely incorporate outstanding dividend payout companies that are expected to benefit from policy measures through our active strategy." He further emphasized, "This product allows investors to seek not only the stable dividends of high-dividend companies but also to benefit from enhanced shareholder returns and stock price re-rating resulting from reevaluation of corporate value."
Listed in January 2026, the SOL Dividend Payout Ratio Top Picks Active ETF has achieved a cumulative return of 28.55% since its listing, amid the rapid upward trend of the Korean stock market. Its net asset value is also rising quickly. With an initial listing size of 10 billion won, the ETF’s net asset value reached 61.3 billion won as of the closing price on February 27, expanding nearly sixfold in just one and a half months.
Kim added, "Dividends of Korean companies are typically outlined based on provisional results and guidance in January to February, and finalized after audits and general shareholders’ meetings in March. As a result, more companies are expected to move toward meeting the requirements for separate taxation on dividend income." He explained, "Since dividend record dates and the degree of benefit can vary by company, a more flexible active management approach can meet the evolving needs of domestic dividend investors."
Kim also noted, "Investors should be aware that separate taxation applies only to dividends from individual companies, and currently, distributions from ETFs are excluded from the scope of separate taxation on dividend income."
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