Top 3 Dividend Stocks On KRX For September 2024

The South Korean market is up 1.4% over the last week, despite a decline of 3.9% over the past 12 months, with earnings forecasted to grow by 29% annually. In this context, identifying strong dividend stocks can be a strategic move for investors seeking stability and income amidst fluctuating market conditions.

Top 10 Dividend Stocks In South Korea

Name	Dividend Yield	Dividend Rating
Kia (KOSE:A000270)	5.57%	★★★★★★
Woori Financial Group (KOSE:A316140)	4.67%	★★★★★☆
HANYANG ENGLtd (KOSDAQ:A045100)	3.36%	★★★★★☆
Hansae (KOSE:A105630)	3.33%	★★★★★☆
KT (KOSE:A030200)	4.76%	★★★★★☆
JW Holdings (KOSE:A096760)	3.42%	★★★★★☆
Industrial Bank of Korea (KOSE:A024110)	7.08%	★★★★★☆
Kyung Nong (KOSE:A002100)	7.16%	★★★★★☆
Samsung Fire & Marine Insurance (KOSE:A000810)	4.48%	★★★★★☆
Snt DynamicsLtd (KOSE:A003570)	4.78%	★★★★☆☆

Click here to see the full list of 76 stocks from our Top KRX Dividend Stocks screener.

Let's explore several standout options from the results in the screener.

Hy-Lok (KOSDAQ:A013030)

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

Overview: Hy-Lok Corporation operates in the fluid and control system industry worldwide, with a market cap of ₩307.41 billion.

Operations: Hy-Lok Corporation generates revenue from manufacturing and selling fittings for mechanical equipment, flange valves, unions, and nipples, amounting to ₩189.37 billion.

Dividend Yield: 4.1%

Hy-Lok's dividend payments have grown over the past five years, despite a relatively short history of payouts. The company's dividends are well-covered by earnings and cash flows, with payout ratios of 26.8% and 33.5%, respectively. Recent buyback activity saw the repurchase of 40,000 shares for KRW 1.05 billion, potentially enhancing shareholder value. Although trading below fair value estimates and offering a top-tier yield in South Korea, its track record remains less established compared to longer-standing dividend payers.

• Delve into the full analysis dividend report here for a deeper understanding of Hy-Lok.
• Our valuation report here indicates Hy-Lok may be undervalued.

HANYANG ENGLtd (KOSDAQ:A045100)

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

Overview: Hanyang ENG Co., Ltd specializes in constructing semiconductor facilities both in South Korea and internationally, with a market cap of ₩302.51 billion.

Operations: Hanyang ENG Co., Ltd's revenue is primarily derived from its System Division, contributing ₩187.75 billion, and its Engineering Business Department, which generates ₩984.44 billion.

Dividend Yield: 3.4%

HANYANG ENG Co.,Ltd offers a reliable dividend yield of 3.36%, with stable and growing payments over the past decade. The dividends are well-covered by earnings (12.1% payout ratio) and cash flows (8.8% cash payout ratio). Despite trading at 96.3% below estimated fair value, its yield is lower than the top 25% of Korean dividend payers. Recent buyback initiatives totaling KRW 5 billion aim to stabilize treasury stock, potentially boosting shareholder value further.

• Get an in-depth perspective on HANYANG ENGLtd's performance by reading our dividend report here.
• In light of our recent valuation report, it seems possible that HANYANG ENGLtd is trading behind its estimated value.

sindohLtd (KOSE:A029530)

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

Overview: Sindoh Co., Ltd. manufactures and sells printers, multi-functional machines, and office solutions in Korea and internationally, with a market cap of ₩334.13 billion.

Operations: Sindoh Co., Ltd. generates revenue primarily from its manufacturing segment, which amounts to ₩372.65 billion.

Dividend Yield: 3.9%

Sindoh Ltd. offers a dividend yield of 3.87%, placing it among the top 25% of Korean dividend payers, but its short history of less than 10 years includes volatile payments with significant annual drops. Despite this, dividends are well-covered by earnings (23.2% payout ratio) and cash flows (22% cash payout ratio). Recent earnings showed slight improvement, with net income rising to KRW 15.95 billion in Q2 2024 from KRW 15.75 billion the previous year.

• Click here to discover the nuances of sindohLtd with our detailed analytical dividend report.
• Upon reviewing our latest valuation report, sindohLtd's share price might be too pessimistic.

Next Steps

• Dive into all 76 of the Top KRX Dividend Stocks we have identified here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Searching for a Fresh Perspective?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• 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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