Amid Stock Market Watch... Target Companies with Over 5% Super High Dividends

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[Asia Economy Reporter Minji Lee] As the year-end KOSPI continues to weaken ahead of the December U.S. Federal Open Market Committee (FOMC) meeting and major countries' shifts in monetary policy, advice to invest in stocks with high dividend yields is gaining traction.

According to financial information provider FnGuide on the 15th, among companies with estimates from three or more institutions, there are 22 listed companies expected to record a dividend yield (consensus) of 5% or higher this year. All are KOSPI-listed companies; there were no KOSDAQ-listed companies. Generally, in the market, stocks with dividend yields exceeding 3% are called dividend stocks, and those exceeding 5% can be considered high-dividend stocks.

The company expected to have the highest dividend yield this year is Samsung Securities. Dividend yield is calculated by dividing the dividend per share by the stock price at that time, giving an estimate of the dividend income. Samsung Securities is expected to pay a dividend of 3,725 KRW per share, resulting in a dividend yield of 7.53%. Following are NH Investment & Securities (6.82%), Woori Financial Group (6.75%), Hana Financial Group (6.51%), DGB Financial Group (6.40%), Samsung Card (6.36%), Industrial Bank of Korea (6.25%), BNK Financial Group (6.20%), JB Financial Group (6.06%), POSCO (5.73%), Kumho Petrochemical (5.72%), Shinhan Financial Group (5.66%), KT&G (5.64%), Korea Electric Power Corporation (5.59%), and SK Telecom (5.49%).

The number of companies offering high dividends with yields over 5% has been increasing annually. In 2018, a total of 45 companies offered dividends above 5%, with 23 KOSPI companies and 22 KOSDAQ companies. In 2019, there were 64 companies (40 KOSPI, 24 KOSDAQ), and last year, 71 companies (55 KOSPI, 16 KOSDAQ) offered high dividends. Companies that have continuously maintained high dividends during this period include financial stocks such as securities, banks, and cards, as well as Hyundai Heavy Industries Holdings (6.91%) and Ssangyong C&E (5.58%).

Securities experts say this week may be the last opportunity to expect stable performance from dividend stocks. A key point to note when buying dividend stocks is that stock prices tend to drop significantly after the ex-dividend date (the 29th). Therefore, the timing of purchase is crucial; if stocks are bought close to the ex-dividend date, the price drop after the ex-dividend date may outweigh the dividend yield. Min-gyu Kim, a researcher at KB Securities, said, "What can affect the total return after buying dividend stocks is the stock price return," adding, "For high-dividend stocks, if the price rises more than the dividend yield before the ex-dividend date, it is worth considering a strategy to sell before the ex-dividend date."

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