What Is the Annual Dividend Yield of KOSPI 200 This Year?

[Asia Economy Reporter Song Hwajeong] This year’s dividend amount for KOSPI 200 is expected to increase compared to last year, but the dividend yield is projected to decline as the overall market capitalization rises due to the KOSPI breaking its previous high.

According to Kyobo Securities on the 25th, based on the common stock market capitalization as of the 10th, the annual dividend yield and total cash dividend amount for KOSPI 200 this year are expected to be 1.74% and 27.2 trillion KRW, respectively. While the cash dividend amount is forecasted to increase by 18% compared to the previous year, the dividend yield is expected to drop by about 0.4 percentage points.

Researcher Kang Hyunjung of Kyobo Securities explained, "Currently, the consensus on the annual dividend yield ranges from a minimum of 1.46% to a maximum of 2.24%. Excluding extreme values, the market consensus using the median, which emphasizes the frequency of analysts’ estimates, is 1.66%, and our estimate is 0.08 percentage points higher than this."

Even with a conservative estimate of Samsung Electronics’ dividend, the annual cash dividend amount for KOSPI 200 is analyzed to be higher than last year. Researcher Kang said, "The market consensus is 553 KRW, but the consensus on Samsung Electronics’ dividend is broadly interpreted. Considering the closing price of the Samsung Electronics individual futures December-January spread on the December futures expiration date, if Samsung Electronics’ year-end dividend is set at 1,100 KRW, the KOSPI 200 annual dividend yield would be 1.98%, with a cash dividend amount of 30.5 trillion KRW."

By sector, dividends in IT are expected to increase significantly due to Samsung Electronics’ influence. Researcher Kang explained, "If Samsung Electronics’ dividend increases, the IT sector’s cash dividends are expected to rise by about 50% compared to the previous year, and dividends in high-dividend sectors such as consumer staples and industrial materials are estimated to be paid at levels similar to last year." On the other hand, traditional high-dividend stocks are expected to see a decline in dividend yields. Researcher Kang said, "The financial sector’s dividend yield is expected to slightly decrease to around 4.2% compared to last year. Since the novel coronavirus infection (COVID-19) is likely to continue through the winter and financial authorities recommend reducing dividends to strengthen the financial sector’s loss absorption capacity, it will be difficult for dividends to increase compared to last year." Dividends in energy and consumer discretionary sectors are also expected to shrink by about 3% and 6%, respectively, compared to the previous year.

This content was produced with the assistance of AI translation services.