3 KRX Dividend Stocks Yielding Up To 4.2%

The South Korean stock market has recently experienced a slight downturn, with the KOSPI index dipping marginally as mixed performances across sectors reflect broader global trends. Despite this, there remains potential for stability and growth, particularly through dividend stocks that offer consistent returns in uncertain times. In such an environment, selecting stocks with reliable dividend yields can provide investors with a measure of predictability and income amidst market fluctuations.

Top 10 Dividend Stocks In South Korea

Name	Dividend Yield	Dividend Rating
Kia (KOSE:A000270)	5.89%	★★★★★★
Kangwon Land (KOSE:A035250)	5.52%	★★★★★☆
Woori Financial Group (KOSE:A316140)	4.39%	★★★★★☆
HANYANG ENGLtd (KOSDAQ:A045100)	3.54%	★★★★★☆
Hansae (KOSE:A105630)	3.16%	★★★★★☆
KT (KOSE:A030200)	4.66%	★★★★★☆
JW Holdings (KOSE:A096760)	3.41%	★★★★★☆
Samsung Fire & Marine Insurance (KOSE:A000810)	4.54%	★★★★★☆
Kyung Nong (KOSE:A002100)	7.07%	★★★★★☆
ORION Holdings (KOSE:A001800)	4.64%	★★★★★☆

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

Let's review some notable picks from our screened stocks.

LX International (KOSE:A001120)

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

Overview: LX International Corp. operates in the trading business both in Korea and internationally, with a market cap of ₩1.08 trillion.

Operations: LX International Corp.'s revenue is primarily derived from its Trading/New Business segment at ₩7.16 billion, followed by the Logistics Division at ₩6.99 billion, and the Resource Sector contributing ₩1.07 billion.

Dividend Yield: 4%

LX International offers a compelling dividend profile with a payout ratio of 35.6%, ensuring dividends are well covered by earnings and cash flows, evidenced by a low cash payout ratio of 10.4%. Despite its top-tier dividend yield in South Korea, the company's dividend history is unstable over the past eight years. Recent financial results show significant growth, with sales at ₩4.07 trillion and net income at ₩90.3 billion for Q2 2024, indicating robust performance despite previous volatility in profit margins.

• Delve into the full analysis dividend report here for a deeper understanding of LX International.
• The valuation report we've compiled suggests that LX International's current price could be quite moderate.

Sungshin Cement (KOSE:A004980)

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

Overview: Sungshin Cement Co., Ltd operates in the manufacturing and sale of cement and ready mixed concrete products both in South Korea and internationally, with a market cap of ₩205.85 billion.

Operations: Sungshin Cement Co., Ltd's revenue is primarily derived from its Cement segment at ₩783.66 billion, followed by Ready-Mix Concrete at ₩182.05 billion and Trade at ₩185.89 billion.

Dividend Yield: 4.3%

Sungshin Cement's dividend payments are well covered by earnings, with a low payout ratio of 13.1%, and cash flows, maintaining a cash payout ratio of 44.9%. Despite being in the top 25% for dividend yield in South Korea at 4.28%, its dividend history is less than ten years old and somewhat unstable. The company trades significantly below estimated fair value but carries a high level of debt, which could impact financial flexibility.

• Dive into the specifics of Sungshin Cement here with our thorough dividend report.
• Upon reviewing our latest valuation report, Sungshin Cement's share price might be too pessimistic.

KB Financial Group (KOSE:A105560)

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

Overview: KB Financial Group Inc. offers a variety of banking and financial services to both consumers and corporations across several countries including South Korea, the United States, and China, with a market cap of ₩34.86 trillion.

Operations: KB Financial Group Inc.'s revenue segments include Banking Sector - Corporate Finance at ₩4.53 trillion, Banking Sector - Household Finance at ₩4.06 trillion, Securities at ₩1.64 trillion, Non-Life Insurance Sector at ₩1.21 trillion, Credit Card Sector at ₩1.10 trillion, Life Insurance at ₩252.60 million, and Banking Sector - Other at ₩665.55 million.

Dividend Yield: 3.2%

KB Financial Group's dividend payments are covered by earnings with a payout ratio of 32.7%, though they have been volatile over the past decade. The dividend yield is relatively low at 3.24% compared to top market payers, but recent increases in dividends suggest potential growth. Despite an unstable track record, the company's buyback program aims to enhance shareholder returns and corporate value. Trading at a discount to estimated fair value, it offers some investment appeal.

• Click here and access our complete dividend analysis report to understand the dynamics of KB Financial Group.
• According our valuation report, there's an indication that KB Financial Group's share price might be on the cheaper side.

Make It Happen

• Unlock our comprehensive list of 75 Top KRX Dividend Stocks by clicking here.
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Ready To Venture Into Other Investment Styles?

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• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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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