Rising Popularity of Dividend Stocks Amid Tax Reform
As the government plans to implement a separate taxation system for dividend income next year, interest in domestic dividend stocks is surging. This has led to an influx of 5 trillion won into dividend stock ETFs since 2023, marking a significant increase compared to previous years. This trend is attributed to investors anticipating tax benefits and changes in corporate dividend policies. The tax reform is expected to prompt companies to increase their dividends, thereby strengthening shareholder return policies.
With notable fund inflows, dividend stock investment is emerging as a major theme in the domestic financial market. Experts highlight the potential for this shift to lead to structural changes that enhance corporate value and reinforce shareholder returns. Long-term, this trend is likely to have a positive impact on the overall domestic stock market, and investors should exercise careful diligence in seeking new opportunities. Monitoring the government's policy changes and their market impact will be crucial.
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