Exploring Dividend Stocks On The KRX In June 2024

Recently, the South Korean market has experienced a slight decline of 1.4% over the past week and has shown no significant movement over the last year. However, with earnings expected to grow by 29% annually, investors might consider dividend stocks as a potentially stable component in their investment portfolios amidst these conditions.

Top 10 Dividend Stocks In South Korea

Name	Dividend Yield	Dividend Rating
Kia (KOSE:A000270)	4.71%	★★★★★★
Shinhan Financial Group (KOSE:A055550)	4.63%	★★★★★☆
KT (KOSE:A030200)	5.49%	★★★★★☆
KB Financial Group (KOSE:A105560)	3.94%	★★★★★☆
Samyang (KOSE:A145990)	3.51%	★★★★★☆
LOTTE Fine Chemical (KOSE:A004000)	4.18%	★★★★★☆
HANYANG ENGLtd (KOSDAQ:A045100)	3.02%	★★★★★☆
Cheil Worldwide (KOSE:A030000)	5.92%	★★★★☆☆
Snt DynamicsLtd (KOSE:A003570)	3.56%	★★★★☆☆
Hansae Yes24 Holdings (KOSE:A016450)	5.32%	★★★★☆☆

Click here to see the full list of 71 stocks from our Top KRX Dividend Stocks screener.

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

Dongkuk HoldingsLtd (KOSE:A001230)

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

Overview: Dongkuk Holdings Co., Ltd. is a South Korean company that manufactures and sells steel products both domestically and internationally, with a market capitalization of approximately ₩260.94 billion.

Operations: Dongkuk Holdings Co., Ltd. generates its revenue primarily from the manufacture and sale of steel products across domestic and international markets.

Dividend Yield: 7.2%

Dongkuk Holdings Ltd. has recently turned profitable with a significant increase in sales and net income as of Q1 2024, showing a strong recovery from previous losses. Despite its high dividend yield of 7.15%, which ranks in the top 25% for the Korean market, the company's dividend history is marked by volatility and inconsistency over the past three years. Although current dividends are well-covered by earnings and cash flows, with payout ratios at 2.9% and cash payout ratios at 5.6%, respectively, shareholder dilution within the last year raises concerns about future sustainability and stability of dividend payments.

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

Motonic (KOSE:A009680)

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

Overview: Motonic Corporation is a global manufacturer and seller of automotive components, with a market capitalization of approximately ₩186.21 billion.

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

Dividend Yield: 5.2%

Motonic has shown a robust earnings growth of 56.3% over the past year, supporting its dividend payments with a low payout ratio of 33.4% and a cash payout ratio of 85.9%. Despite this, it has a relatively short dividend history of less than ten years and an unstable track record in dividend consistency. However, its price-to-earnings ratio at 6.4x is attractively below the South Korean market average of 12.9x, and its current yield stands in the top quartile at 5.23%.

• Click to explore a detailed breakdown of our findings in Motonic's dividend report.
• According our valuation report, there's an indication that Motonic's share price might be on the expensive side.

Xi S&D (KOSE:A317400)

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

Overview: Xi S&D Inc. operates in various sectors including housing construction, building construction, home network installation, information and communication construction, housing management, and electronic security works, with a market capitalization of approximately ₩165.21 billion.

Operations: Xi S&D Inc. generates revenue through activities in sectors such as housing and building construction, home network and information and communication installation, along with housing management and electronic security services.

Dividend Yield: 3.5%

Xi S&D has a shaky dividend history with payments declining since initiation two years ago. Despite trading at 75.2% below its estimated fair value, the company's dividends suffer from volatility and unreliability. Recently, Xi S&D announced a KRW 3 billion share repurchase to stabilize its stock price, effective until November 2024. Its dividends are well-covered by earnings with a payout ratio of 34.8% and by cash flows at 3.9%. However, profit margins have decreased from last year's 3.2% to just 1.2%.

• Delve into the full analysis dividend report here for a deeper understanding of Xi S&D.
• Our comprehensive valuation report raises the possibility that Xi S&D is priced lower than what may be justified by its financials.

Turning Ideas Into Actions

• Embark on your investment journey to our 71 Top KRX Dividend Stocks selection here.
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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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