3 High Yield Dividend Stocks On KRX With Up To 5.8% Yield

The South Korean market has shown resilience, remaining stable over the past week and achieving a growth of 7.2% over the last year, with earnings expected to grow by 30% annually. In this context, high-yield dividend stocks can be particularly appealing for investors looking for steady income in a promising economic environment.

Top 10 Dividend Stocks In South Korea

Click here to see the full list of 72 stocks from our Top KRX Dividend Stocks screener.

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

Korea Cast Iron Pipe Ind (KOSE:A000970)

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

Overview: Korea Cast Iron Pipe Ind. Co., Ltd. is engaged in the manufacturing and selling of pipes, both domestically in South Korea and internationally, with a market capitalization of approximately ₩146.06 billion.

Operations: Korea Cast Iron Pipe Ind. Co., Ltd. generates ₩238.13 billion from steel pipes, ₩129.69 billion from cast iron pipes, and ₩83.67 billion from its cosmetics sector in revenue segments.

Dividend Yield: 5.9%

Korea Cast Iron Pipe Ind. (A000970) offers a dividend yield of 5.89%, ranking in the top 25% in the South Korean market. The company maintains a sustainable payout with both earnings and cash flows supporting its dividends, evidenced by payout ratios of 50.2% and 49.9%, respectively. Despite this, A000970's dividend history is relatively short at under 10 years, which may raise concerns about long-term sustainability despite recent earnings growth of 45.7%.

• Unlock comprehensive insights into our analysis of Korea Cast Iron Pipe Ind stock in this dividend report.
• In light of our recent valuation report, it seems possible that Korea Cast Iron Pipe Ind is trading beyond its estimated value.

TYM (KOSE:A002900)

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

Overview: TYM Corporation, with a market cap of approximately ₩191.88 billion, operates in the manufacturing and sale of agricultural machinery and cigarette filters, serving both domestic and international markets.

Operations: TYM Corporation generates its revenue primarily from the production and sale of agricultural machinery and cigarette filters.

Dividend Yield: 3.6%

TYM, with a dividend yield of 3.58%, stands among the top 25% of South Korean dividend payers. Despite a short history of payouts and volatility over the past five years, dividends are well-supported by both earnings and cash flows, with payout ratios at 15.7% and 33% respectively. However, the company trades at a significant discount—51.1% below estimated fair value—and carries high debt levels, which could impact future financial stability despite current coverage metrics.

• Click here and access our complete dividend analysis report to understand the dynamics of TYM.
• Upon reviewing our latest valuation report, TYM's share price might be too pessimistic.

Shinhan Financial Group (KOSE:A055550)

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

Overview: Shinhan Financial Group Co., Ltd. is a global provider of financial products and services, based in South Korea, with a market capitalization of approximately ₩27.41 trillion.

Operations: Shinhan Financial Group Co., Ltd. generates its revenue primarily through banking (₩8.67 billion), credit cards (₩2.02 billion), and securities (₩0.76 billion).

Dividend Yield: 3.9%

Shinhan Financial Group's dividend profile shows a mix of strengths and concerns. The company's dividends are currently well-covered by earnings with a 33% payout ratio, and this is expected to remain sustainable over the next three years at 23.4%. Despite a decade of increasing dividends, payments have been inconsistent, marked by significant volatility. Recently, Shinhan announced a KRW 540 quarterly dividend per share and initiated a KRW 300 billion share buyback program to enhance shareholder value. However, its recent financial performance shows a slight decline in net income year-over-year.

• Navigate through the intricacies of Shinhan Financial Group with our comprehensive dividend report here.
• Our expertly prepared valuation report Shinhan Financial Group implies its share price may be lower than expected.

Key Takeaways

• Reveal the 72 hidden gems among our Top KRX Dividend Stocks screener with a single click here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Want To Explore Some Alternatives?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com