Among the December settlement corporations listed on the KOSPI market that have paid dividends continuously for the last three years, 61 stocks showed a market dividend yield (dividend ÷ stock price) of 5% or more. Among these, 16 high-dividend stocks, which only pay settlement dividends without quarterly or semiannual dividends and designate December 31 as the dividend record date, were counted.
According to the Korea Exchange as of the 26th, stocks that designate December 31 as the dividend record date must be purchased by that date to receive dividends. This is because trading will close on the 30th, requiring two trading days for settlement. The 31st has been designated as a year-end holiday.
Among the 16 high-dividend KOSPI stocks that can receive settlement dividends by today, the stock with the highest average market dividend yield over the past three years is Yesco Holdings. It recorded an average dividend yield of 13.1% over the past three years. Il Sung I&S ranked second with an average dividend yield of 9.7% over the past three years. However, the Korea Exchange's tally includes special dividends, and the average market dividend yield of these stocks is in the 7% range.
In terms of average market dividend yield over the past three years, the following are noted: ▲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% ▲Telco Ware 5.8% ▲Dongbu Construction 5.6% ▲HS Hyosung 5.6% ▲HS Hwasung 5.5% ▲Korea Land Trust 5.3% ▲Korea Cast Iron Pipe Co. 5.2% ▲AJ Networks 5% ▲Cuckoo Holdings 5% are considered high-dividend stocks.
Although these stocks have consistently paid dividends, it is uncertain both the scale of the dividends and whether they will be distributed. Hyundai Marine & Fire Insurance, which has continued paying dividends for more than 20 years, is projected to have no settlement dividends this year. This is due to the introduction of the new International Financial Reporting Standards (IFRS 17), which requires insurance firms to prepare reserves for surrender benefits. As the amount of money insurance firms must set aside to prepare for policy cancellations increases, the distributable profits for dividends decrease. DB Financial Investment and others estimate Hyundai Marine & Fire Insurance's distributable profit for this year to be 0 won.
Although the scale of cash dividends is confirmed through the board of directors and regular shareholder meetings, some corporations present it in advance. Hanil Holdings has disclosed plans for a settlement dividend of 930 won per share this year. The current market dividend yield based on stock price is around 5.9%.
Although it did not fall among the 16 high-dividend stocks, Kiwoom Securities also proposed a settlement dividend of 7,500 won per share. The dividend yield compared to Kiwoom Securities' current stock price is about 5.8%. The dividend record date for Kiwoom Securities is also December 31, meaning that stocks must be held by that date to receive the dividend.
The effect of ex-dividend dates must be considered as well. For stocks with a dividend record date of December 31, the 27th is the ex-dividend date when the right to receive dividends expires. Yesco Holdings' stock price has averaged a 5% drop on ex-dividend dates over the past three years. Similarly, Korea Shell Oil's stock price has dropped an average of 6.4% during the same period. This means that dividend income and stock price declines could offset each other in the case of short-term investments.
Many corporations, known for their so-called 'advance dividends and subsequent investments,' have decided on separate dividend record dates at board meetings, forecasting a continued handover of dividend stock investments. Most financial stocks such as Industrial Bank of Korea, Daishin Securities, Samsung Card, NH Investment & Securities, BNK Financial Group, DGB Financial Group, and Hana Financial Group are expected to hold board meetings in January or February 2025 to designate the dividend record date for settlement dividends.