Exploring Dividend Opportunities On The KRX With Stocks Yielding Up To 6.8%

editorial-team@simplywallst.com (Simply Wall St)

3 July 2024 at 5:05 pm·4-min read

Over the past year, South Korea's stock market has shown resilience with a 5.0% increase, maintaining stability over the last 7 days. In light of this steady market performance and anticipated annual earnings growth of 30%, investors might consider dividend stocks as a potentially appealing option for both income and growth opportunities.

Top 10 Dividend Stocks In South Korea

Name	Dividend Yield	Dividend Rating
Kia (KOSE:A000270)	4.53%	★★★★★★
LOTTE Fine Chemical (KOSE:A004000)	4.31%	★★★★★☆
NH Investment & Securities (KOSE:A005940)	6.31%	★★★★★☆
Industrial Bank of Korea (KOSE:A024110)	7.00%	★★★★★☆
KT (KOSE:A030200)	5.48%	★★★★★☆
Shinhan Financial Group (KOSE:A055550)	4.09%	★★★★★☆
KB Financial Group (KOSE:A105560)	3.63%	★★★★★☆
Kyung Nong (KOSE:A002100)	4.93%	★★★★★☆
HANYANG ENGLtd (KOSDAQ:A045100)	3.12%	★★★★★☆
Cheil Worldwide (KOSE:A030000)	5.99%	★★★★☆☆

Click here to see the full list of 71 stocks from our Top KRX Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

LOTTE Fine Chemical

Simply Wall St Dividend Rating: ★★★★★☆

Overview: LOTTE Fine Chemical Co., Ltd. specializes in the production and distribution of chemical products within Korea, boasting a market capitalization of approximately ₩1.18 trillion.

Operations: LOTTE Fine Chemical Co., Ltd. generates its revenues primarily through the production and distribution of chemical products.

Dividend Yield: 4.3%

LOTTE Fine Chemical has demonstrated a mixed performance in dividend reliability, with a history of unstable dividends over the past decade. Despite this, the company maintains a reasonable payout ratio of 63.6%, ensuring that dividends are well-covered by earnings. Additionally, its cash payout ratio stands at 85.7%, indicating adequate coverage by cash flows as well. However, recent financials show a significant drop in net income and basic earnings per share compared to the previous year, reflecting potential challenges ahead in maintaining dividend levels amidst declining profitability.

KOSE:A004000 Dividend History as at Jul 2024

Cheil Worldwide

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Cheil Worldwide Inc. operates globally, offering a range of marketing solutions with a market capitalization of approximately ₩1.88 trillion.

Operations: Cheil Worldwide Inc. specializes in diverse marketing solutions across the globe, reflected in a market capitalization of roughly ₩1.88 trillion.

Dividend Yield: 6%

Cheil Worldwide's dividends, with a yield of 6.01%, rank in the top quartile in South Korea's market and are backed by earnings and cash flows, with payout ratios of 59.1% and 41% respectively. Despite trading at 57.6% below its estimated fair value, suggesting potential undervaluation, Cheil has only offered dividends for five years with unstable growth in payouts. Analyst consensus projects a potential price increase of 35.2%. The firm recently reported Q1 results on April 26, 2024.

KOSE:A030000 Dividend History as at Jul 2024

DGB Financial Group

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: DGB Financial Group Co., Ltd. operates primarily in South Korea, offering a range of banking products and services through its subsidiaries, with a market capitalization of approximately ₩1.34 trillion.

Operations: DGB Financial Group Co., Ltd. generates revenue from banking (₩2.74 billion), credit sector (₩0.20 billion), life insurance (₩0.58 billion), asset management (₩0.01 billion), and securities investment (₩2.22 billion).

Dividend Yield: 6.8%

DGB Financial Group has demonstrated a stable dividend history with a 6.82% yield, positioning it among the top 25% of Korean dividend payers. The dividends are well-supported by earnings, maintaining a payout ratio of 29.9%, and are projected to stay robust with an anticipated coverage of 24.9% in three years. However, the company's relatively short dividend history of nine years and recent declines in quarterly net income from KRW 167.99 billion to KRW 111.72 billion may raise concerns about future sustainability and growth potential.

KOSE:A139130 Dividend History as at Jul 2024

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include KOSE:A004000KOSE:A030000 KOSE:A139130 and .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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