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Top South Korean (KOSPI) Dividend Stocks
UPDATED Jun 02, 2023
What are the best South Korean (KOSPI) Dividend Stocks?
According to our Simply Wall St analysis these are the best South Korean dividend companies. We look for companies with high quality dividends and healthy balance sheets to find the top Dividend Stocks.
Our criteria to find Top Dividend Companies
High Yield
- Companies with a high dividend yield are more attractive due to the higher expected income for each dollar invested.
- Yields vary between markets, so we focus on the top dividend payers in each market.
What do we look for?
- Is the yield in the top 25% of the market's dividend payers.
Consistent Dividends
- Companies with a strong track record of paying a consistent and growing dividend are the most attractive.
- If the dividend has been cut substantially in the past, then it's difficult to be confident about future payments.
What do we look for?
- Has the dividend been stable over the last 10 years.
- Has the dividend grown over the last 10 years.
Dividend Cover
- Ideally the company doesn't pay out all of its earnings, neglecting future growth.
- If a company is unable to afford its dividend, then it will probably lead to a dividend cut and share price erosion.
What do we look for?
- Are dividends covered by earnings.
- Are dividends forecast to be covered by earnings in the future.
Healthy Balance Sheet
- Investors want to make sure the company is positioned to cover its debts. Repayments on debt typically take priority over shareholder return initiatives.
What do we look for?
- Does the company have a manageable level of debt.
- Is the company able to cover its interest repayments.
7 companies meet this criteria in the South Korean market
Hankook & Company Co., Ltd., together with its subsidiaries, manufactures and sells tires, tubes, and alloy wheels.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
High Dividend: A000240's dividend (5.34%) is in the top 25% of dividend payers in the KR market (3.26%)
Notable Dividend
Rewards
Price-To-Earnings ratio (7.4x) is below the KR market (14.2x)
Earnings are forecast to grow 30.68% per year
Risks
No risks detected for A000240 from our risks checks.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: A097950's dividend (1.72%) is low compared to the top 25% of dividend payers in the KR market (3.26%).
Rewards
Trading at 69.2% below our estimate of its fair value
Earnings are forecast to grow 30.35% per year
Risks
Profit margins (1.2%) are lower than last year (2.4%)
Has a high level of debt
SNT DYNAMICS CO.,Ltd manufactures and sells precision machinery in South Korea and internationally.
Dividend Criteria
Earnings Coverage
High Dividend: A003570's dividend (4.77%) is in the top 25% of dividend payers in the KR market (3.26%)
Notable Dividend
Future Dividend Coverage
Growing Dividend
Stable Dividend
Rewards
Trading at 76.6% below our estimate of its fair value
Earnings are forecast to grow 24.09% per year
Earnings grew by 199% over the past year
Risks
No risks detected for A003570 from our risks checks.
Dividend Criteria
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: A036570's dividend (2.09%) is low compared to the top 25% of dividend payers in the KR market (3.26%).
Stable Dividend
Rewards
Trading at 7.9% below our estimate of its fair value
Earnings are forecast to grow 20.73% per year
Risks
No risks detected for A036570 from our risks checks.
Ymc Co., Ltd. manufactures and sells flat panel displays (FPDs), targets, and components in South Korea and China.
Dividend Criteria
Earnings Coverage
High Dividend: A155650's dividend (4.03%) is in the top 25% of dividend payers in the KR market (3.26%)
Notable Dividend
Future Dividend Coverage
Growing Dividend
Stable Dividend
Rewards
Trading at 97.7% below our estimate of its fair value
Earnings are forecast to grow 80.15% per year
Earnings grew by 63.4% over the past year
Risks
Does not have a meaningful market cap (₩113B)
Hecto Innovation Co., Ltd. provides database and online information services in Korea.
Dividend Criteria
Earnings Coverage
Future Dividend Coverage
High Dividend: A214180's dividend (3.31%) is in the top 25% of dividend payers in the KR market (3.26%)
Notable Dividend
Growing Dividend
Stable Dividend
Rewards
Trading at 80.1% below our estimate of its fair value
Earnings are forecast to grow 12.28% per year
Earnings grew by 24.5% over the past year
Risks
No risks detected for A214180 from our risks checks.
Dividend Criteria
Earnings Coverage
High Dividend: A002990's dividend (7.94%) is in the top 25% of dividend payers in the KR market (3.26%)
Notable Dividend
Future Dividend Coverage
Growing Dividend
Stable Dividend
Rewards
Trading at 18.7% below our estimate of its fair value
Earnings are forecast to grow 34.75% per year
Risks
Profit margins (1%) are lower than last year (6.6%)