Among the 61 companies listed on the KOSPI market that have continuously paid dividends over the past three years and have a market dividend yield (dividends ÷ stock price) of over 5%, 15 are classified as high-dividend stocks, which only declare annual dividends and specify the dividend record date as December 31.
According to the Korea Exchange on the 26th, stocks designated with a dividend record date of December 31 must be purchased by that date to receive dividends. This is because settlement takes two trading days, and the market will close on the 30th. The 31st has been designated as a year-end holiday.
Among the 15 high-dividend stocks in the KOSPI market that must be purchased by this date to receive annual dividends, Il Sung IES reported the highest average market dividend yield over the past three years at 9.7%. However, the Korea Exchange's aggregate includes special dividends, so the average market dividend yield for annual dividends is in the 7% range.
In terms of average market dividend yield over the past three years, the following are noted as high-dividend stocks: ▲Korea Shell Oil 8.1%, ▲Hanyang Securities 7.5%, ▲SeAH Special Steel 6.73%, ▲Hyundai Marine & Fire Insurance 6.1%, ▲Samsung Securities 6%, ▲Hanil Holdings 5.9%, ▲Telcoware 5.8%, ▲Dongbu Construction 5.6%, ▲HS Hyosung 5.6%, ▲HS Hwasung 5.5%, ▲Korea Land Trust 5.3%, ▲Korea Cast Iron Pipe Industry 5.2%, ▲AJ Networks 5%, ▲Cuckoo Holdings 5%.
These stocks have maintained consistent dividends, but the amount and feasibility of dividends cannot be definitively determined. Hyundai Marine & Fire Insurance, which has provided dividends for over 20 years, is expected not to have an annual dividend this year. This is due to the introduction of the new International Financial Reporting Standards (IFRS 17), which requires insurance companies to set aside reserves for policy cancellation refunds. If the money that insurance companies must set aside for potential policy cancellations increases, available dividends decrease. DB Financial Investment and others estimate Hyundai Marine & Fire Insurance's available dividends this year to be zero.
Although the size of cash dividends is determined through board meetings and regular shareholders' meetings, some corporations present plans in advance. Hanil Holdings announced it plans to set the annual dividend at about 930 won per share. The current stock price puts the dividend yield at about 5.9%.
Although it is not among the 15 high-dividend stocks, Kiwoom Securities has proposed an annual dividend of 7,500 won per share. The dividend yield for Kiwoom Securities is around 5.8% based on the current stock price. Kiwoom Securities' dividend record date is also December 31, so shares must be held by this date to receive dividends.
The impact of the ex-dividend date should also be considered. For stocks with a dividend record date of December 31, the ex-dividend date falls on the 27th. In the case of Korea Shell Oil, the average stock price has dropped by 6.4% on the ex-dividend date over the past three years. This means that during short-term investments, the dividend income could match the drop in stock price.
Many corporations, known as those that implement 'prior dividends and post-investment' policies, have decided to designate the dividend record date separately at board meetings, indicating an ongoing shift among dividend investors. Most financial stocks, including Industrial Bank of Korea, Daishin Securities, Samsung Card, NH Investment & Securities, BNK Financial Holdings, DGB Financial Holdings, and Hana Financial Holdings, are expected to hold board meetings in January-February 2025 to designate the annual dividend record date.