[Weekend Money] Stocks to Watch as the Spring Breeze Blows In

Recently, dividend stocks have been showing notable strength in both the U.S. and Korean stock markets. In Korea in particular, the cut in dividend income tax is adding momentum to the rally in dividend stocks.

According to Korea Investment & Securities, while concerns continue in the U.S. stock market over whether Big Tech (large information technology companies) can sustain their growth and over their valuations, dividend stocks are showing relatively solid performance compared with growth stocks in the first quarter of this year. The Aristocrat Index, a representative dividend-stock index within the S&P 500, has risen 7.7% in the first quarter, and the Dow Jones High Dividend 100 Index has gained 13.6%, both outperforming the S&P 500 (-0.7%) and the Dow Jones Industrial Average (+2.0%).

A similar pattern is appearing in the Korean stock market as well. In particular, dividend stocks have been performing well since the last week of January. Yeom Dongchan, a researcher at Korea Investment & Securities, said, "The sectors projected to have the highest dividend yields in 2026 are utilities, financials, and consumer staples, and all of these sectors rank near the top in terms of returns in February." He added, "As the KOSPI has risen, its dividend yield (based on KRX statistics) has fallen below 1.0%, but the KOSPI High Dividend 50 Index is still expected to deliver a dividend yield of more than 3.0%."

The reduction in dividend income tax, which takes effect this year, is cited as one of the key factors behind the strength in dividend stocks. Yeom explained, "Dividend income eligible for the tax cut applies to dividends generated in 2026, so investors should now pay attention to companies whose dividend record dates fall in February and March this year," adding, "Even if you buy now, you can still receive fourth-quarter 2025 dividends from certain companies, and among those, it is important to focus on companies whose dividends will be eligible for the dividend income tax cut." He went on to say, "If a company pays a relatively large portion of its annual dividends in the fourth quarter, an even more positive approach would be possible."

Companies with February dividend record dates whose dividends will be subject to the reduced dividend income tax include KT, KB Financial Group, HD Hyundai Heavy Industries, Hana Financial Group, HD Hyundai Electric, POSCO Holdings, Woori Financial Group, KT&G, and KakaoBank. Companies with March dividend record dates whose dividends will be subject to the reduced dividend income tax include LG, LG Electronics, POSCO Future M, Amorepacific, Shinsegae, Emart, Lotte Shopping, Lotte Chilsung Beverage, LIG Nex1, Hyundai Glovis, and SK Gas.