Investors seeking dividends are racing to meet the year-end deadline, with funds flowing rapidly into high-dividend stocks ahead of the record date for December fiscal-year companies.
The last day to purchase shares to receive dividends from December fiscal-year companies is Thursday, according to the financial investment industry on Tuesday. As Korea's stock market operates on a T+2 settlement basis, investors must buy shares by December 26 to be registered on the shareholder list by December 30, the last trading day of the year, and secure dividend rights.
Expectations are growing among investors that this year's dividends will exceed previous years, as companies have increased payout ratios or announced mid- to long-term shareholder return policies following the government's Value-up Program.
Bank and telecom stocks, traditionally considered high-dividend plays, are leading the trend. Built on stable profit structures with consistent dividend payments, these companies have recently stepped up shareholder returns by combining share buybacks and dividend increases. Securities analysts project dividend yields of 6 percent or higher for these stocks.
Auto stocks are also emerging as high-dividend candidates. Hyundai Motor (005380.KS) and Kia (000270.KS) have gradually raised their payout ratios through mid- to long-term dividend policies, and improved earnings have expanded their capacity for dividend increases, analysts say.
Among individual stocks, Hyundai Elevator (017800.KS) stands out. The company recently secured substantial dividend resources as part of its shareholder value enhancement policy. Securities analysts estimate the company will pay at least 12,000 won per share for this fiscal year's dividend alone. With dividend yield exceeding 10 percent based on current share prices, the stock is drawing intense interest from investors seeking a "dividend jackpot."
KT&G (033780.KS), a traditional dividend leader, also remains on investors' watchlists. The company announced it will raise its minimum dividend to 6,000 won per share starting fiscal year 2025. Having already paid 1,400 won in interim dividends in August, KT&G is expected to distribute at least 4,600 won in year-end dividends. Analysts say this could be the company's largest cash dividend ever.
However, experts caution against rushing into investments based solely on year-end dividends. An increasing number of companies have adopted quarterly dividends or set dividend record dates separately from the calendar year-end. Cases of investors missing actual dividend payments due to confusion over record dates are not uncommon.
