3 Premier KRX Dividend Stocks With Up To 6.8% Yield

In the last week, the South Korean market has stayed flat, but it is up 4.1% over the past year with earnings forecasted to grow by 29% annually. In this environment, dividend stocks offering attractive yields can be a compelling option for investors seeking income and potential growth, making them worth exploring in today’s market landscape.

Top 10 Dividend Stocks In South Korea

Click here to see the full list of 74 stocks from our Top KRX Dividend Stocks screener.

Let’s take a closer look at a couple of our picks from the screened companies.

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Youngone Holdings Co., Ltd. is a company that manufactures and sells apparel, footwear, gear, sportswear, and jackets both in South Korea and internationally, with a market cap of ₩1.04 trillion.

Operations: Youngone Holdings Co., Ltd. generates revenue from several segments, including Manufacture OEM with ₩3.93 billion, Domestic Retail at ₩1.02 billion, and SCOTT contributing ₩1.04 billion.

Dividend Yield: 5.3%

Youngone Holdings offers a compelling dividend profile, with a low payout ratio of 12.2% and cash payout ratio of 14%, ensuring dividends are well-covered by earnings and cash flows. Despite paying dividends for only five years, the yield is in the top 25% of South Korean stocks. Recent developments include a joint venture with Goldwin Inc., potentially enhancing future revenue streams. However, its short dividend history may concern some investors seeking long-term stability.

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: HMM Co., Ltd is an integrated logistics company that provides shipping and logistics services worldwide, with a market cap of ₩13.07 trillion.

Operations: HMM Co., Ltd generates its revenue primarily from the Container segment with ₩7.62 trillion, followed by Tankers & Dry Bulkers at ₩1.35 trillion.

Dividend Yield: 4%

HMM Ltd. has shown impressive earnings growth, with recent net income rising significantly to KRW 660.86 billion for Q2 2024. Despite this, its dividend history is less stable, having paid dividends only for two years with volatility in payments. The dividend yield is competitive within the top 25% of the Korean market and well-covered by both earnings and free cash flows due to a low payout ratio of 30.9%. However, profit margins have declined from last year’s levels.

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Industrial Bank of Korea is a bank that provides financing to small and medium-sized enterprises (SMEs) both in Korea and internationally, with a market cap of ₩11.48 billion.

Operations: Industrial Bank of Korea’s revenue segments include Corporate Customer at ₩4.42 trillion, Individual Customer at ₩1.59 trillion, and IB at ₩369.17 billion.

Dividend Yield: 6.8%

Industrial Bank of Korea offers a competitive dividend yield in the top 25% of the Korean market, supported by a low payout ratio (34.3%), ensuring coverage by earnings. However, its dividend history is marked by volatility and unreliability over the past decade. Recent financial activities include raising $798.14 million through fixed-income offerings, which may impact its risk profile due to reliance on external borrowing for funding 64% of liabilities.

Taking Advantage

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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