Increased Interest in High-Dividend Stocks and ETFs
Amid discussions on government plans to reduce dividend income tax, there is a rising interest among investors in high-dividend stocks and ETFs. Notably, the KOSPI High Dividend 50 Index and the KOSPI Dividend Growth 50 Index have outperformed the KOSPI index this month, with gains of 5.83% and 4.68%, respectively. The investment sentiment towards high-dividend financial stocks has also strengthened, seeing the KOSPI 200 Financial High Dividend TOP 10 Index rising by 9.56% this month. This performance seems driven by investor optimism about potential tax reforms lowering the highest dividend income tax rate from 35% to 25%.
However, concerns about the ongoing tech stock rally cannot be ignored. As financial stocks may become relatively sidelined compared to tech stocks, investors with diversified stock portfolios need to remain vigilant about these market dynamics. Thus, cautious strategies would be prudent amid such rapidly evolving market scenarios.
In a related event, Shinhan Asset Management’s flagship high-dividend ETFs, SOL Financial Group Plus High Dividend and SOL Korea High Dividend, caused some concern by selling a portion of their holdings to distribute dividends. This action led to misunderstandings among investors; however, Shinhan Asset Management clarified that it was not a capital impairment but a distribution within the dividend resources.
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Despite KOSPI fluctuations, expectations for dividend income tax cuts drive high-yield stocks and ETFs rally - Hans Economy| Hans Economy = Reporter Kim Yujin | As the government's discussion on reducing dividend income tax accelerates, the demand for stable cash flows amid KOSPI volatility is converging, driving funds towards high-yield stocks and ETFs. According to the Korea Exchange on the 18th, the 'KOSPI High Dividend 50 Index' and 'KOSPI Dividend Growth 50 Index,' which include 50 representative high-dividend stocks, rose 5.83% and 4.68%, respectively, from the start of this month until the 13th. These gains exceed the KOSPI index increase rate (1.54%) for the same period. The investment sentiment towards high-dividend stocks in the financial sector has also strengthened. This month, the 'KOSPI 200 Financial High Dividend TOP10' index rose by 9.56%. KOSPI is
[Exclusive] Shinhan Asset Management Sells Shares in ETFs to Pay Dividends...“Controversy Over Damage to the Original” - Smart TodaySmart Today = Reporter Lee Tae-yun | It appears that Shinhan Asset Management has sold original shares from its representative high-dividend ETFs, namely the SOL Financial Holding Plus High Dividend and SOL Korea High Dividend, to pay dividends to investors. Instead of using dividends received from portfolio companies, resources were provided as dividends by selling a portion of the held shares, causing investor confusion.
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