On the 13th, KOSDAQ listed company RedcapTour announced a tax-exempt dividend of 2000 won per share. The stock price surged during trading with the news of the 'bomb dividend,' with market dividend yield exceeding 22% on the dividend declaration date. The price hit the upper limit on the 13th, and the upward trend continued on the 14th, marking a four-year high.
Until recently, many investors were merely anticipating the announcement of 'surprise dividends' that typically come out at the beginning of the year. This is because listed companies usually hold a board meeting to decide dividends after the standard dividend date. However, this year, more companies are announcing dividend decisions before the standard dividend date. RedcapTour has also set the dividend date for March 12. This means that buying shares now will entitle investors to dividends.
As more companies are moving the settlement of account dividend date from the end of the year (December 31) to between 2-4 months following the shareholders' meeting, the time has come to review dividend investment strategies.
Since the deletion of the commercial law regulation that set the settlement of account dividend date on December 31, businesses have been able to set their own dividend dates since last year. This is a measure to prevent 'blink dividends.'
According to the Financial Supervisory Service's electronic disclosure system, many companies have set the dividend date for the 28th of this month. These include BGF, CJ CheilJedang, GS Engineering and Construction, HD Hyundai Heavy Industries, LS, NAVER, SK hynix, ORION, KCC, KT&G, Poongsan, and Hyundai Motor.
Among these, high-yield dividend stocks include LX International at 7.3%, GS at 6.8%, Ifuture at 5.9%, and Yesco Holdings at 5.7%.
The four major financial holdings, regarded as representative dividend stocks, are approaching their settlement of account dividend dates. Shinhan Financial Group's dividend date is on the 21st of this month, and KB Financial Group, Hana Financial Group, and Woori Financial Group have their dividend date on the 28th. The market dividend yield is in the 4-5% range.
Many companies have also set their dividend dates from the end of March to early April. On March 28, the companies include Kyobo Securities, POSCO STEELEON, SeAH Besteel Holdings, SeAH Steel, and Hyundai Steel, while on March 31, LOTTE Corporation, HL Holdings, LOTTE Rental, Hansol Holdings, and DongKuk Holdings are included.
On April 1, the dividend dates include CREVERSE, SK Networks, Shinsegae Food, and on April 3, Doosan, Hyundai Home Shopping, Handsome, Hyundai Ezwel, and DAEWON KANG UP, and on April 4, ORICOM, CJ, among others.
To receive settlement of account dividends, investors must purchase shares at least two trading days before the dividend date, taking into account the settlement lag. If the dividend date is February 28, it means shares should be purchased by the 26th, two trading days prior.
Kim Jae-eun, a researcher at NH Investment & Securities, noted that "about 40% of listed companies have reflected related contents in their articles of incorporation following the announcement of the financial authorities' improvement measures on dividend procedures," adding that "companies that have improved their dividend procedures show higher dividend yields than those that have not."
However, high-yield dividend companies often experience sharp declines in stock prices on the ex-dividend date. It is advisable to consider both dividend revenue and the trading losses due to stock price drops after the ex-dividend date when investing.