Top South Korean (KOSPI) Dividend Stocks

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

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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.

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CJ Cheiljedang Corporation engages food and bio businesses.

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%).

See Full Stock Report

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

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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

See Full Stock Report

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.

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Ncsoft Corporation develops and publishes online games worldwide.

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

See Full Stock Report

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.

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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

See Full Stock Report

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)

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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

See Full Stock Report

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.

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KUMHO Engineering & Construction Co., Ltd.

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

See Full Stock Report

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%)

View all Risks and Rewards
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