Hyundai Elevator is drawing intense interest from investors after projections emerged for dividends of at least 12,000 won per share. While the stock is rising on high-dividend expectations, there are a few cautions to consider when investing. First, the 2025 settlement of account dividend record date has not yet been set, and investors should be prepared for a potential share price drop after the ex-dividend date.
Hyundai Elevator's share price has climbed 80% from the start of the year, showing strong momentum, and has recently extended into a steeper rally.
The focus from investors stems from a projection in the securities industry of "at least 12,000 won per share in dividends." DS Investment & Securities said in a recent report that if the third-quarter settlement of account dividends and this year's settlement of account dividends are combined, dividends of at least 12,000–14,000 won per share are expected.
Based on the closing price on the 3rd, the dividend yield reaches 13.7–16%, and after this report was released, the share price jumped 13% over the past four trading days.
Earlier, Hyundai Elevator said in a filing that it would fully reduce 307.2 billion won in capital surplus and transfer it to retained earnings, and use the entire amount as funding for this year's settlement of account dividends. It also said that under the shareholder return policy released in 2023, it plans to determine this year's settlement of account dividend by calculating the funding as the sum of at least 50% of net income and up to 100% of one-off gains.
Researcher Kim Su-hyeon at DS Investment & Securities said, "This year's expected net income is 173.5 billion won, and more than 50% of that will be used for dividends," adding, "On top of that, the company plans to pay up to 100% in dividends on profits from recent asset sales, including 73.5 billion won from selling part of a building and a stake in Movex."
Investor interest in Hyundai Elevator is exploding on expectations for record dividends. However, there are points that must be kept in mind to actually receive dividends.
The most important factor is the dividend record date. The dividend record date is the day on which the right to receive dividends is fixed, and Hyundai Elevator has not yet disclosed the 2025 settlement of account dividend record date. Generally, you must hold the shares up to two business days before the record date to receive dividends.
A Hyundai Elevator official said, "In the case of the 2025 settlement of account dividend record date, it is scheduled for late February next year, and the exact date has not been set," adding, "Before then, we will decide through a board resolution and make a separate announcement."
Investors should also be cautious about a share price drop on the ex-dividend date. The ex-dividend date means the day before the dividend record date. If you held the shares up to two days before the record date, you are included in the shareholder register for dividends, so you can still receive dividends even if you sell on the ex-dividend date.
However, on the ex-dividend date, investors who aimed for dividends tend to sell a lot of shares, which can cause a sharp drop in the share price. Buying to receive dividends when the share price is high can instead lead to losses from a price decline.
In fact, on Dec. 27 last year, which was the ex-dividend date for Hyundai Elevator's settlement of account dividends, Hyundai Elevator's share price fell 7.85% in a single day.