Top 3 KRX Dividend Stocks To Consider In October 2024

Over the past 7 days, the South Korean market has risen by 1.6%, contributing to a robust 12% climb over the last year, with earnings forecasted to grow by 30% annually. In this promising environment, selecting dividend stocks that offer consistent payouts and potential for capital appreciation can be an effective strategy for investors seeking steady income and growth opportunities.

Top 10 Dividend Stocks In South Korea

Click here to see the full list of 75 stocks from our Top KRX Dividend Stocks screener.

Let’s dive into some prime choices out of the screener.

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

Overview: Samhwa Paints Industrial Co., Ltd. manufactures and sells various paints in South Korea and internationally, with a market cap of ₩174.10 billion.

Operations: Samhwa Paints Industrial Co., Ltd.’s revenue primarily comes from its Paints and Chemicals segment, contributing ₩657.78 billion, followed by the IT segment with ₩8.73 billion.

Dividend Yield: 5.4%

Samhwa Paints Industrial’s dividend yield of 5.42% ranks in the top 25% of South Korea’s market, supported by a low payout ratio of 47.5% and cash payout ratio of 29.9%, indicating strong coverage by earnings and cash flows. However, its dividend history is less than a decade old with volatility and unreliability noted over the past five years. The company’s price-to-earnings ratio at 8.8x suggests attractive valuation compared to the broader market average of 11.1x.

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

Overview: Hyundai G.F. Holdings Co., Ltd. operates in the rental and investment sectors, with a market capitalization of approximately ₩702.35 billion.

Operations: Hyundai G.F. Holdings Co., Ltd. focuses on rental and investment activities.

Dividend Yield: 4.4%

Hyundai G.F. Holdings offers a dividend yield of 4.44%, placing it among the top 25% of dividend payers in South Korea, with robust coverage by earnings and cash flows, evidenced by low payout ratios of 1.8% and 27.2%, respectively. However, its dividend history is under a decade with noted volatility and unreliability over nine years, despite recent increases in payments. The stock trades significantly below its estimated fair value, suggesting potential undervaluation opportunities for investors.

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

Overview: Kangwon Land, Inc. operates in the casino, tourist hotel, and ski resorts sectors in South Korea with a market cap of ₩3.59 trillion.

Operations: Kangwon Land, Inc.’s revenue primarily comes from its Casinos & Resorts segment, totaling ₩1.41 trillion.

Dividend Yield: 5.3%

Kangwon Land’s dividend yield of 5.25% ranks it in the top 25% among South Korean dividend stocks, with a payout ratio of 46.9%, indicating solid earnings coverage, though cash flow coverage is higher at 77.6%. Despite recent earnings growth and a share buyback plan to enhance shareholder value, its dividends have been volatile over the past decade, lacking stability and reliability. The stock trades at an attractive valuation with a P/E ratio below the market average.

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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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