Top KRX Dividend Stocks To Watch In June 2024

The South Korea stock market has recently shown robust performance, climbing to a 30-month high as sectors such as financials, chemicals, and energy have seen notable gains. Amidst this upward trend and mixed global cues, investors are keenly watching for opportunities that balance growth with stability. In the current market environment, dividend stocks are particularly appealing for those looking to generate steady income while participating in the potential upside of South Korea's economic resilience and growth prospects.

Top 10 Dividend Stocks In South Korea

Name	Dividend Yield	Dividend Rating
Kia (KOSE:A000270)	4.38%	★★★★★★
NH Investment & Securities (KOSE:A005940)	6.48%	★★★★★☆
Industrial Bank of Korea (KOSE:A024110)	7.29%	★★★★★☆
KT (KOSE:A030200)	5.41%	★★★★★☆
Shinhan Financial Group (KOSE:A055550)	4.41%	★★★★★☆
LOTTE Fine Chemical (KOSE:A004000)	4.46%	★★★★★☆
KB Financial Group (KOSE:A105560)	3.89%	★★★★★☆
Kyung Nong (KOSE:A002100)	4.81%	★★★★★☆
Cheil Worldwide (KOSE:A030000)	6.02%	★★★★☆☆
Korea Cast Iron Pipe Ind (KOSE:A000970)	5.86%	★★★★☆☆

Click here to see the full list of 70 stocks from our Top KRX Dividend Stocks screener.

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

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, operating both in South Korea and internationally, with a market capitalization of approximately ₩146.92 billion.

Operations: Korea Cast Iron Pipe Ind. Co., Ltd. generates its revenue primarily through the manufacture and sale of pipes, serving markets in South Korea and abroad.

Dividend Yield: 5.9%

Korea Cast Iron Pipe Ind. Co., Ltd. maintains a solid dividend profile with a 5.86% yield, ranking in the top 25% of South Korean dividend payers. Its dividends are well-supported by both earnings and cash flows, with payout ratios at 50.2% and 49.9%, respectively, indicating sustainability. Despite a strong recent earnings growth of 45.7%, the company’s shorter dividend history under ten years and an unstable track record may raise concerns about long-term reliability.

• Delve into the full analysis dividend report here for a deeper understanding of Korea Cast Iron Pipe Ind.
• The analysis detailed in our Korea Cast Iron Pipe Ind valuation report hints at an inflated share price compared to its estimated value.

Hyundai Marine & Fire Insurance (KOSE:A001450)

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

Overview: Hyundai Marine & Fire Insurance Co., Ltd. is a South Korean insurance company specializing in marine and fire insurance products, with a market capitalization of approximately ₩2.60 trillion.

Operations: Hyundai Marine & Fire Insurance Co., Ltd. generates its revenue primarily from specialized marine and fire insurance products.

Dividend Yield: 6.2%

Hyundai Marine & Fire Insurance Co., Ltd. offers a compelling 6.23% dividend yield, placing it among the top quartile in the South Korean market. Despite its appealing position, the company's dividends exhibit volatility and an unsteady growth pattern over its brief five-year dividend history. However, both earnings and cash flows robustly support these payments, with payout ratios of 21.6% and 7.5%, respectively. Recent financials show a significant rise in net income to KRW 373.25 billion from KRW 213.56 billion year-over-year, suggesting potential for continued financial health.

• Get an in-depth perspective on Hyundai Marine & Fire Insurance's performance by reading our dividend report here.
• The analysis detailed in our Hyundai Marine & Fire Insurance valuation report hints at an deflated share price compared to its estimated value.

Motonic (KOSE:A009680)

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

Overview: Motonic Corporation specializes in manufacturing and selling automotive components globally, with a market capitalization of approximately ₩187.94 billion.

Operations: Motonic Corporation generates its revenue through the production and sale of automotive parts on a global scale.

Dividend Yield: 5.2%

Motonic maintains a sustainable dividend with a 33.4% payout ratio, indicating strong earnings coverage. The dividends are also well-supported by cash flows, evidenced by an 85.9% cash payout ratio. Although its Price-To-Earnings ratio at 6.4x is favorable compared to the South Korean market average of 12.8x, Motonic has only been distributing dividends for five years, marking a relatively short history in consistent payouts despite recent growth in earnings by 56.3%. Its current dividend yield stands at 5.18%, placing it in the top tier of South Korean dividend stocks.

• Unlock comprehensive insights into our analysis of Motonic stock in this dividend report.
• Insights from our recent valuation report point to the potential overvaluation of Motonic shares in the market.

Taking Advantage

• Embark on your investment journey to our 70 Top KRX Dividend Stocks selection here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
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Ready To Venture Into Other Investment Styles?

• 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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