The popular Taiwan ETF, Cathay Sustainable High Dividend (00878), has announced an estimated dividend of $0.47 per unit for the second quarter. Based on today's (30th) closing price of $20.31, the single dividend yield is 2.31%, while the annualized yield reaches 9.26%.

Reviewing past dividends, the first quarter of this year had a dividend of $0.50, while last year the distributions were $0.55, $0.55, $0.51, and $0.40 respectively. The ex-dividend trading date for 00878 is set for May 19, and investors looking to receive dividends must purchase shares by May 16.

Fund manager You Rijie noted that despite market fluctuations, 00878 continues to grow, with beneficiary numbers rising from 1.55 million to 1.72 million, and the fund size increasing from NT$376.32 billion (as of December 31, 2024) to NT$415.47 billion (as of April 29, 2025). This ETF stands out as one of the few that has managed to grow against the trend during this stock market downturn.

You Rijie further mentioned that with the ongoing trend of AI, the market demand is expected to shift from semiconductors to more end devices, which should indirectly benefit 00878. The fund emphasizes industry diversification, with approximately 20% allocation to semiconductors, computers and related equipment, and financial insurance sectors, while tech stocks play an offensive role in the portfolio.

He further stated that the weight distribution of the index's constituents is based on an adjusted yield method, focusing on high-yield stocks. Despite recent turbulence, the financial and telecom sectors have remained relatively stable, creating a resilient group within the stock market. Among the constituents, major telecom companies such as Chunghwa Telecom are expected to distribute $5 per share in cash dividends, the highest since 2017, while FarEasTone expects to distribute $3.56 - a nearly six-year high - and Taiwan Mobile plans to issue a cash dividend of $4.50, bringing good news to investors.

Among the constituents of 00878 are Cathay United Financial (3.51% holding), Yuanta Financial (3.02%), and Cathay Financial (2.69%). Cathay United Financial has announced a cash dividend of $2.30, a ten-year high; Yuanta Financial plans to distribute $1.85, a record high; and Cathay Financial is set to distribute $3.50.

As the second quarter approaches its peak for the change of several high dividend ETFs, Cathay Investment Trust advises investors to carefully examine the overlap in the holdings of ETF constituents, as high concentration may result in hidden costs during this period of stock turnover.