[Click eStock] "Insurance and Securities Stocks Need Dividend Attention... Attractiveness Increases with Interest Rate Decline"

On the 3rd, Kiwoom Securities stated regarding insurance and securities stocks, "The overall industry's shareholder return real yield has improved, so a stable stock price trend can be expected at least until the ex-dividend date."

On the same day, Kiwoom Securities researcher Ahn Young-jun said, "Thanks to the value-up program and industry recovery, the scale of shareholder returns is expected to increase significantly. At the same time, the risk-free rate is declining due to falling interest rates."

Last year, the annual dividend record dates for most insurance and securities stocks changed from the end of December to late March to early April, after the regular shareholders' meeting. Researcher Ahn noted, "Although the dividend record date was delayed compared to before, market interest in dividend stocks gradually expanded from 2 to 3 months before the previous record date," adding, "Especially after the change in the dividend record date last year, year-end dividend stock prices showed a favorable trend."

He also said, "Among insurance and securities stocks, companies whose dividend record dates did not change last year must disclose the dividend record date two weeks in advance due to amendments in their articles of incorporation. Whether the dividend record date will change this year will soon be known."

The decline in interest rates is also enhancing the attractiveness of dividend stocks. Researcher Ahn emphasized, "The Bank of Korea lowered the base rate twice in the fourth quarter, from 3.5% to 3.0%. A decline in interest rates means an increase in the attractiveness of dividend stocks because, assuming the dividend yield remains the same, the investor's real yield rises as the risk-free rate falls."

He added, "In particular, the recent market interest rate has dropped by 50 to 60 basis points (1bp = 0.01 percentage points) compared to the end of the first quarter of this year, when last year's annual dividend ex-dividend occurred, further increasing the premium on dividends."