Taiwan ETF Dividend Analysis: 00919 Maintains 10% Annual Yield Despite Reduction, 00713 Leads with $0.78 Per Distribution

ETF Dividend Landscape Shows Market Divergence in September

September reveals a significant shift in Taiwan's ETF dividend distribution patterns. Eighteen ETFs simultaneously announced their latest dividend amounts yesterday (1st), with eight quarterly-distribution ETFs showing reduced payouts. However, two non-quarterly ETFs bucked this trend by reaching record-high dividends since their listings, highlighting the increasing market divergence.

Quarterly ETFs See Broad Reductions While 00919 Maintains Dividend Leadership

The closely watched Yuanta Taiwan High-Dividend ETF (00919) reduced its distribution from $0.72 to $0.54 per share, marking a 25% decrease and returning to its initial distribution level from Q2 2023. Despite this reduction, calculated at the September 1st closing price of $21.2, its annualized dividend yield remains impressive at 10.19%. This marks the ETF's tenth consecutive quarter maintaining a double-digit yield, solidifying its position as the leader among quarterly-distribution ETFs.

Dahua High-Yield 30 ETF (00918) ranks second with a $0.52 dividend and 9.22% annualized yield. CTBC Green Energy and EV ETF (00896) and Prudential Momentum 50 ETF (009803) follow with dividends of $0.40 and $0.19 respectively, claiming the second and third positions in terms of single-distribution yield rates at 2.3% and 1.7%.

00713 Offers Highest Single Distribution as Two ETFs Break Records

In terms of single distribution amount, Yuanta Taiwan High Dividend Low Volatility ETF (00713) leads with $0.78 per share, delivering a 6.1% annualized yield. Notably, amid the general reduction trend, two ETFs have achieved record-high distributions since their inception: Nomura Taiwan New Technology 50 ETF (00935) with $0.75 and KGI Taiwan AI 50 ETF (00952) with $0.03, representing annualized yields of 6.18% and 3.48% respectively.

Fund Manager Explains 00919's Dividend Reduction: Capital Gains Underperformance

Regarding 00919's dividend adjustment, Yuanta Investment Trust attributes the decrease primarily to "unsatisfactory capital gains." Portfolio manager Ming-Chih Hsieh explained that 00919's dividend sources include constituent stock dividends, income equalization funds, and capital gains from constituent stocks. Taiwan's stock market plunge in April due to tariff concerns negatively impacted constituent stocks, subsequently affecting capital gains. The adjustment is unrelated to the Financial Supervisory Commission's income equalization fund guidelines.

00919 recently modified its stock selection methodology in May, adjusting its portfolio to 40 stocks and increasing allocations to large-cap and financial stocks. This change has reduced volatility, indicating the new portfolio composition is more suitable for long-term dividend investing strategies.

Ex-Dividend Schedule: Important Dates for Investors

Most quarterly-distribution ETFs will go ex-dividend on September 16, with exceptions being 00918 and First Financial Industrial 30 ETF (00728) on September 18, and 00713 on September 19. Investors seeking to qualify for these dividends should note that the final purchase date is the trading day before the ex-dividend date.

While most Taiwan ETFs have reduced dividend amounts this quarter, high-dividend ETFs continue to offer risk diversification and stable income from a long-term investment perspective. Investors should focus on constituent stock quality and long-term dividend stability rather than fluctuations in individual distribution amounts.