KDB Daewoo Securities Co. launched the KDB Daewoo Dividend Growth Index Wrap to lead its customers to invest in companies with stability and growth potential, amidst an age of low growth and low interest rates. The Daewoo Securities Research Lab came up with the dividend growth index after ranking 300 listed firms in order of their market values according to information on their finances and an evaluation of their corporate values.
The selected companies are made of those which have been paying high dividends and are expected to keep doing so in the future, and those which have the high potentials to declare high dividends in the future.
The new dividend growth index is made of 30 of the 50 items of business whose selections are based on dividend income. Every quarter, the items are evaluated and their weights are reevaluated by the Daewoo Dividend Growth Index Rebalancing Committee, which values the dividend growth model the most important in the decisions.
After checking companies’ performance results since 2006 using simulation tests, it was found that the Daewoo Dividend Growth Index outperformed other dividends and profits from investments in shares, based on an index analysis of average annual share prices.
Furthermore, it was proven that the index did well after its introduction compared with other indices related to investments in shares of the companies listed on the stock market.
Investments in shares through the Wrap Index has many advantages as it can check on the details of asset management and balances in real time, making tailor-made investment designs for customers possible, even considering no charges for sales of shares before maturing.
The tax rate on high dividends from 14 percent to 9 percent, the selection of tax payments on financial earnings and other tax benefits can be obtained, which are better than the investments in ETF and funds.
Director Kim Hi-joo of the Product Development Department said the dividend payment rate is among the lowest in the world, but the cash holdings by the listed companies compared to their capital are among the highest. The pressure to increase dividends is likely to rise among foreign investors, while the government came out with the measures to expand the dividends of listed firms, which is likely to spur change in the securities market.
He went on to say that Daewoo Securities’ Dividend Growth Index Wrap is tailor made for the coming change in the stock market, leading investors to stable growth potential through higher dividends.
_대우증권pr.jpg)
A model promotes a giveaway to offer a travel coupon worth up to 2 million won to each personal fund subscriber of KDB Daewoo Securities.
_대우홍성국.jpg)
