KOSPI Listed Companies Paid 27.5 Trillion Won in Dividends Last Year, Up 3.3% Year-on-Year

Despite the worsening business environment due to interest rate hikes, shareholder returns have been emphasized, resulting in a slight increase in dividends paid by companies listed on the KOSPI market last year compared to the previous year.

Korea Exchange, Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

According to the Korea Exchange on the 17th, an analysis of the settlement and cash dividend performance, dividend yield, payout ratio, and stock price fluctuation rate of December fiscal year-end companies listed on the KOSPI market showed that 69.8% (558 companies) of the 799 December fiscal year-end companies paid cash dividends this year, with total dividends amounting to 27.5 trillion KRW, a 3.3% increase from the previous year.

Among all dividend-paying companies, 93.4% (521 companies) paid dividends for two or more consecutive years, and 81.0% (452 companies) for five or more consecutive years. The number of companies paying dividends for five or more consecutive years increased by approximately 1.3% compared to the previous year (446 companies). A Korea Exchange official stated, "Looking at the dividend trends of dividend-paying companies over the past three years, more than 90% of companies that paid dividends one year continued to do so the following year," adding, "It is judged that companies are increasing the predictability of dividends through consecutive dividend payments and are continuously strengthening shareholder return policies."

The average dividend yield for common and preferred stocks in 2023 was 2.72% and 3.43%, respectively, both recording the highest levels in the past five years. However, due to the significant rise in government bond yields following the base interest rate hikes, the average dividend yields for common and preferred stocks were below government bond yields. The number of companies whose dividend yields exceeded government bond yields also decreased from 239 last year to 168 this year.

Over the past five years, the industries with the highest average dividend yields were telecommunications (3.71%), finance (3.64%), and electric and gas utilities (3.36%).

The payout ratio of dividend-paying companies in 2023 was 34.31%, down 0.76 percentage points from 35.07% the previous year. The average stock price fluctuation rate of companies paying cash dividends was 10.2%, showing a positive increase, but it fell short of the KOSPI's rise of 18.73% during the same period.

A Korea Exchange official said, "Despite the worsening business environment due to interest rate hikes, it has been confirmed that many listed companies are making efforts to return profits to shareholders and maintain stable dividend policies," adding, "The Korea Exchange plans to continue efforts to promote dividends by expanding the provision of dividend information for listed companies and developing dividend-related products and indices."