The 14 best South Korean Dividend Stocks
Last Updated on April 18, 2023
Welcome to the world of South Korean dividend stocks! South Korea has a rapidly expanding economy and a rapidly growing stock market. Investing in dividend stocks in South Korea can provide investors with a steady income stream, as well as potential capital appreciation. Dividend stocks in South Korea are often attractive for long-term investors, as they provide a steady stream of income that is usually taxed at a lower rate than regular income. Furthermore, many South Korean dividend stocks offer higher yields than those found in other countries. This makes them an attractive option for investors looking to maximize their returns.
The best south Korean dividend stocks
1. Samsung Electronics Co Ltd (KSE: 005930): Samsung is a multinational conglomerate headquartered in South Korea. It is the world’s largest manufacturer of consumer electronics and digital media products such as televisions, smartphones, and semiconductors. The company has a dividend yield of 0.7% and has been paying dividends since 2004.
2. Hyundai Motor Company (KSE: 005380): Hyundai is one of the largest automobile manufacturers in the world and is based in South Korea. It has a dividend yield of 2.6% and has been paying dividends since 1998.
3. KB Financial Group Inc. (KSE: 105560): KB Financial Group is a South Korean financial services company. It has a dividend yield of 3.2% and has been paying dividends since 2006.
4. POSCO (KSE: 005490): POSCO is a South Korean steel manufacturer. It has a dividend yield of 2.4% and has been paying dividends since 2004.
5. CJ Corporation (KSE: 001040): CJ Corporation is a South Korean conglomerate with interests in food, entertainment, pharmaceuticals, and more. It has a dividend yield of 0.7% and has been paying dividends since 2005.
6. SK Holdings Co. Ltd. (KSE: 034730): SK Holdings is a South Korean multinational conglomerate with interests in energy, chemicals, telecommunications, and more. It has a dividend yield of 1.7% and has been paying dividends since 2004.
7. LG Corporation (KSE: 003550): LG Corporation is a South Korean electronics manufacturer. It has a dividend yield of 0.7% and has been paying dividends since 2003.
8. Hana Financial Group (KSE: 086790): Hana Financial Group is a South Korean financial services company. It has a dividend yield of 1.9% and has been paying dividends since 2008.
9. Naver Corporation (KSE: 035420): Naver Corporation is a South Korean internet services company. It has a dividend yield of 0.7% and has been paying dividends since 2012.
10. Hyundai Heavy Industries (KSE: 009540): Hyundai Heavy Industries is a South Korean shipbuilding and engineering company. It has a dividend yield of 2.4% and has been paying dividends since 2006.
11. Shinhan Financial Group (KSE: 055550): Shinhan Financial Group is a South Korean financial services company. It has a dividend yield of 3.5% and has been paying dividends since 2006.
12. Kia Motors Corporation (KSE: 000270): Kia Motors Corporation is a South Korean automobile manufacturer. It has a dividend yield of 1.7% and has been paying dividends since 2004.
13. Hyundai Steel Company (KSE: 004020): Hyundai Steel Company is a South Korean steel manufacturer. It has a dividend yield of 2.6% and has been paying dividends since 2004.
14. LG Chem Ltd. (KSE: 051910): LG Chem Ltd. is a South Korean chemical manufacturer. It has a dividend yield of 1.2% and has been paying dividends since 2007.
How to buy south Korean stocks?
Buying South Korean stocks is a great way to diversify your portfolio and get exposure to the world’s 11th largest economy. The first step to buying South Korean stocks is to open an account with a broker that offers access to the South Korean stock market. You can open an account with an online broker, such as Daewoo Securities, KB Securities or Mirae Asset Daewoo. Once you have opened an account, you will need to transfer funds from your bank account to the brokerage account.
The next step is to research the stocks you are interested in buying. You can look up information on stocks in South Korea on the Korea Exchange website, which provides real-time stock quotes and financial news. You can also consult financial websites such as Bloomberg and Reuters for more detailed information.
Once you have decided on the stocks you would like to buy, the next step is to place an order. You can use your broker’s online platform to place an order. Generally, you will need to specify the stock you are buying, the number of shares, and the price you are willing to pay. You can also specify if you would like your order to be a market order or a limit order.
After you have placed the order, you will need to wait for the order to be filled. Once the order is filled, the stock will be added to your portfolio. At this point, you can choose to hold the stock for the long term, or you can choose to sell it when you think the price is right.
When trading South Korean stocks, it is important to remember that the South Korean market is regulated by the Financial Supervisory Service, and there are certain rules and regulations that you must abide by. Additionally, it is important to keep an eye on the news, as political or economic events can have an impact on the stock market.
Are south Korean dividend stocks a good investment?
South Korean dividend stocks can be a good investment for those looking to earn income from their portfolio. Dividends are a way to receive money from the company you are invested in. When the company makes a profit, it can pay out a portion of that money to its shareholders in the form of a dividend. Investing in stocks that pay dividends can provide a steady source of income, and South Korean stocks have the potential to be a good investment.
South Korean stocks have a reputation for being stable and providing steady returns. The South Korean economy is well developed, and its stock market is considered to be one of the most liquid in the world. This makes it relatively easy to buy and sell stocks from the country, making it a good choice for investors looking to diversify their portfolios.
In addition, South Korea has many publicly traded companies that are known for paying out generous dividends. These companies tend to have a long history of profitably paying out dividends, making them attractive to income-seeking investors.
Finally, South Korea has some of the lowest corporate tax rates in the world, which makes dividend stocks even more attractive. With lower taxes, companies are able to pay out more of their profits in the form of dividends, resulting in higher yields for investors.
Overall, South Korean dividend stocks can be a good investment for those looking to earn income from their portfolio. The country’s relatively stable economic and political environment, along with its low corporate taxes, make it an attractive option for income-seeking investors.
How big is the south Korean stock market?
The South Korean stock market, also known as the KOSPI (Korea Composite Stock Price Index), is the largest stock market in South Korea. It is the 15th largest stock market in the world, with a market capitalization of around $1.7 trillion as of May 2021. The KOSPI is composed of over 800 stocks and is considered a bellwether of the South Korean economy. It includes stocks from the country’s largest companies, such as Samsung, Hyundai, and LG, and is closely watched by investors around the world. The Seoul Stock Exchange, which is the main stock exchange in South Korea, is the home of the KOSPI.
The KOSPI has seen significant growth in recent years, with average daily trading volume increasing from 7.7 trillion won ($6.9 billion) in 2016 to 15.4 trillion won ($13.8 billion) in 2021. The index has also seen strong performance, rising from a low of 1,947 points in March 2009 to an all-time high of 3,232 points in May 2021. This strong performance has been driven by increased foreign investment and a strong domestic economy.
Overall, the South Korean stock market is a large and growing market that has seen impressive growth over the past decade. It is watched closely by investors around the world and is considered an important indicator of the South Korean economy.
South Korean dividend stocks vs American dividend stocks?
South Korean dividend stocks and American dividend stocks have some similarities and differences. Both types of stocks offer dividends, which are payments made to shareholders out of a company’s profits. However, the size and frequency of dividends, as well as the tax implications, can vary significantly between the two.
When it comes to size, South Korean dividend stocks tend to offer a higher yield than American dividend stocks. This is due to the fact that South Korea has a relatively low average market capitalization, meaning that companies tend to pay out a greater portion of their profits. In addition, South Korean dividend stocks also tend to pay out their dividends more frequently than American dividend stocks, providing shareholders with more regular income.
When it comes to taxes, South Korean dividend stocks are generally more tax-friendly than American dividend stocks. Since South Korea has a lower corporate tax rate than the United States, shareholders often benefit from a lower tax rate on their dividends. In addition, the South Korean government also offers certain tax incentives for investors in certain types of dividend stocks.
Overall, South Korean dividend stocks offer a higher yield and more frequent payments than American dividend stocks, making them an attractive choice for investors looking for a steady stream of income. However, investors should also consider the tax implications before investing in either type of dividend stock.
What is the average dividend yield historically in South Korea?
The average dividend yield in South Korea historically has been around 2-3%. This means that if you invested in a company in South Korea, you could expect to receive 2-3% of the value of your investment in the form of a dividend payment each year. This is significantly lower than the average dividend yield in other countries, such as the United States, which has an average dividend yield of around 2-3%. While this may seem low, it is important to remember that South Korea has a relatively low cost of living, meaning that the same dividend payment will go a lot further in South Korea than it would in other countries.
Are south Korean stocks shareholder friendly?
South Korean stocks are generally considered to be shareholder friendly. South Korea is known for having a strong corporate governance system that protects the interests of shareholders. Companies are required to disclose financial information to shareholders, which allows investors to make informed decisions about their investments. South Korean companies also have to submit regular reports to the Financial Supervisory Service, which helps to ensure transparency and accountability.
Shareholders are also protected by South Korea’s corporate law, which sets strict rules on how companies can use their capital. Companies must provide detailed information on dividends, stock splits, and other corporate actions. Shareholders also have the right to vote on matters affecting the company, such as mergers and acquisitions.
Overall, South Korean stocks are considered to be shareholder friendly. Investors can take comfort in knowing that their investments are protected by strong corporate governance and disclosure rules. This helps to ensure that shareholders have a say in the management of the company and that their investments are safe.
Is dividend investing popular in south Korea?
Dividend investing is not as popular in South Korea as it is in the United States, but there are still some investors who are interested in it. This is because the South Korean stock market has been relatively stable in recent years, which has made investors more confident in investing in dividend-paying stocks. Dividend investing involves buying stocks that pay out dividends, which are usually a portion of the company’s profits that are distributed to shareholders. This means that investors can earn a steady income from their investments and potentially benefit from capital appreciation.
However, many South Korean investors prefer to focus on capital appreciation rather than dividend investing. This is because the South Korean stock market is largely driven by short-term speculation and momentum. As a result, investors focus on stocks that have the potential for quick gains over those that offer more consistent dividend income.
In addition, some South Korean investors may not be familiar with the concept of dividend investing, which can make it difficult to find good stocks to invest in. Finally, the taxation of dividend income in South Korea is quite high, which makes it difficult to realize the benefits of dividend investing.
Overall, dividend investing is not as popular in South Korea as it is in the United States. However, there are still some investors who are interested in it, as it offers the potential for steady income and capital appreciation.
Are small caps dividend stocks better than large-cap dividends in South Korea?
It depends on your investment goals and risk tolerance. Small cap dividend stocks may offer higher returns than large cap dividend stocks in South Korea, but they also carry more risk. Small caps tend to be more volatile and can be more susceptible to unfavorable economic conditions.
Large cap dividend stocks, on the other hand, are typically more stable and less likely to experience sudden price fluctuations. They may not offer the highest returns, but they tend to provide more consistent and reliable income. They may also be less affected by economic downturns than small caps.
Ultimately, the decision of which dividend stocks are better for you will depend on your risk tolerance, goals, and the amount of capital you have to invest. If you are looking for higher returns, small cap dividend stocks may be a better choice. But if you want more stability and a more consistent return, large cap dividend stocks may be a better option.
The historical return of South Korean stocks vs south Korean dividend stocks
South Korea’s stock market has been one of the best performing in Asia since the 1980s. Over the past 40 years, South Korean stocks have generated an average annual return of around 10%. This return is slightly lower than the average annual return of the S&P 500, which has been around 11% since 1980.
The performance of dividend stocks in South Korea has been even better. Dividend stocks are stocks that pay shareholders a portion of the company’s profits as a cash dividend. Over the past 40 years, South Korean dividend stocks have generated an average annual return of around 11%, making them one of the best performing markets in Asia. This return is slightly higher than the average annual return of non-dividend stocks in South Korea, which has been around 9%.
The historical returns of South Korean stocks and dividend stocks demonstrate the potential of investing in South Korea. While the return of South Korean stocks is slightly less than that of the S&P 500, the return of dividend stocks is slightly higher. This shows that South Korean stocks can generate a higher return when dividends are included. Therefore, investors should consider investing in South Korean stocks, especially dividend stocks, to benefit from the potential of the South Korean market.
Pros and cons of buying South Korean dividend stocks
1. Diversification: South Korean stocks offer a great way to diversify your portfolio. By investing in South Korean stocks, you can spread your risk across different countries and industries, giving you a more balanced portfolio.
2. Attractive Dividend Yields: South Korean stocks often offer attractive dividend yields. This means that you can earn a steady stream of income from your investments without having to put in a lot of effort.
3. Low Volatility: South Korean stocks are generally less volatile than stocks from other countries. This means that you can enjoy a more stable return on your investments.
4. Growth Potential: South Korea has a rapidly growing economy, which means that investing in South Korean stocks can give you access to some of the most attractive growth opportunities.
1. Currency Risk: South Korean stocks are denominated in South Korean won, so investing in them can expose you to currency risk. This means that if the won depreciates against other currencies, you could lose money on your investments.
2. Political Risk: South Korea has a volatile political landscape, which can affect the performance of its stocks. For example, if the government enacts policies that are not beneficial to the local economy, it could negatively affect the performance of South Korean stocks.
3. Limited Liquidity: South Korean stocks tend to be less liquid than stocks from other countries. This means that it can be difficult to find buyers and sellers when you want to trade them.
4. Lack of Transparency: South Korean companies tend to be less transparent than companies from other countries. This can make it difficult to fully understand the financial health of the company and its prospects for the future.