KOSDAQ Dividend-Paying Companies Reach Record High, Dividend Firms Increase for 5 Consecutive Years

Exchange Announces Analysis Results of 2023 Cash Dividend Disclosures for KOSDAQ

Last year, the number of dividend-paying corporations in the KOSDAQ market reached an all-time high. The number of companies paying dividends for five consecutive years also increased.

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

On the 17th, the Korea Exchange announced the results of its analysis of cash dividend disclosures for 2023 by KOSDAQ-listed companies with December fiscal year-ends.

The number of listed companies that paid year-end dividends was 607. Among them, 389 companies (64.1%) paid dividends for five consecutive years, an increase from 379 companies (63.8%) the previous year.

The total amount of dividends was 2.05 trillion KRW, a slight decrease compared to the previous year (2.18 trillion KRW).

The average dividend payout ratio of dividend-paying corporations was 29.6%, similar to the previous year’s 29.8%.

The average dividend yield reached its highest level since 2016. However, due to the high interest rate environment, it fell below the government bond yield for the second consecutive year. The number of companies whose dividend yield exceeded the government bond yield was 77 (12.7%).

Last year, the average stock price fluctuation rate of dividend-paying corporations compared to the previous year-end (13.5%) was lower than the KOSDAQ index fluctuation rate (27.6%). However, the five-year stock price increase rate of companies paying dividends for five consecutive years (61.3%) exceeded the KOSDAQ index fluctuation rate (28.3%) during the same period by 33.0 percentage points.

An official from the Exchange stated, "The five-year stock price fluctuation rate of companies that have paid dividends for five consecutive years significantly outperformed the KOSDAQ index fluctuation rate during the same period, establishing a virtuous cycle in the capital market through the activation of long-term dividend investment. Since the announcement of the dividend procedure improvement plan in January last year, a total of 672 companies have adjusted their dividend record dates, creating an environment where listed companies voluntarily confirm dividend amounts and investors can participate."

He added, "We will continue to strive to promote dividends and expand a dividend-based investment culture through the ongoing provision of dividend information and continuous management of dividend-related products."