The total amount of cash dividends for companies listed on the Korea Composite Stock Price Index (KOSPI) has surpassed 30 trillion won. The size of the dividends has increased by more than 10% compared to the previous year, and the market dividend yield has reached the highest level in the last five years.
According to the Korea Exchange on the 16th, among the 807 companies listed on the KOSPI last year, 565 companies (70%) paid dividends, and the dividends they distributed totaled 30.3451 trillion won. This represents an increase of about 2.8926 trillion won (10.5%) from the previous year's 27.4525 trillion won. The average dividend per corporation has also expanded from 49.2 billion won to 53.7 billion won.
A total of 454 corporations have continued to pay dividends for more than five consecutive years, exceeding 80% of all dividend-paying corporations. The average market dividend yield for common shares is 3.1%, while preferred shares are at 3.7%, both marking the highest levels in five years.
In particular, the gap between the market dividend yield for common stocks and government bond yields has significantly narrowed from 0.8 percentage points in 2023 to 0.1 percentage points, coinciding with the drop in government bond yields last year. Over the past five years, the average market dividend yield by sector was highest in the financial sector at 3.8%, followed by electricity and gas (3.6%) and telecommunications (3.5%).
The average dividend payout ratio for dividend-paying corporations is 34.7%, having increased by 0.4 percentage points compared to the previous year. While the stocks of companies that paid dividends decreased by an average of 5.1% last year, this was relatively favorable compared to a 9.6% decline in the KOSPI index during the same period.
In particular, among the 105 corporations closing their accounts in December that conducted value-up disclosures, 100 companies, or 95.2%, distributed dividends. Their total dividends amounted to 18 trillion won, accounting for 59.2% of the total. The market dividend yields for common and preferred shares were 3.2% and 4.0%, respectively, while the payout ratio was 41.0%, exceeding the overall average.
A representative from the exchange noted, "Despite the deterioration of the business environment due to high interest rates and rising exchange rates, it was confirmed that many listed companies are striving to return profits to shareholders and maintain stable dividend policies."
In the Korea Securities Dealers Automated Quotations (KOSDAQ) market, the number of dividend-paying companies and the size of dividends both reached all-time highs. Last year, 612 companies listed on KOSDAQ distributed a total of 2.313 trillion won in dividends, which is an increase of 12.7% (260.3 billion won) compared to the previous year (607 companies).
A total of 402 corporations have implemented dividends continuously for over five years, with an average payout ratio of 34.4%, setting a record within five years. The average market dividend yield is 2.5%, which is an increase of 0.6 percentage points compared to the previous year. The stock prices of dividend-paying corporations fell by 13.0% during the same period, but showed a more favorable trend than the KOSDAQ index (-21.7%).