[Featured Stock] Easy Holdings Extends Rally on Rising Dividend Appeal

Shares of Easy Holdings have continued to rally following the news of an expanded dividend.

As of 9:40 a.m. on the 24th, Easy Holdings was trading at 8,370 won, up 650 won (8.42%) from the previous trading day.

On the 20th, Easy Holdings announced in a regulatory filing that it had decided on a year-end dividend of 1,361 won per common share. On the back of this, the stock hit its upper price limit the previous day.

Shinhan Investment & Securities maintained its "Buy" rating on Easy Holdings the previous day and raised its target price by 13% from the previous level to 6,800 won.

Kim Taehoon, an analyst at Shinhan Investment & Securities, said, "Easy Holdings has set March 10 as the record date for the dividend, and it announced that shareholders who hold the shares through the market close on March 6 of the same month will receive a dividend of 1,361 won per share," adding, "Based on the closing price on the 20th, the dividend yield was 22.9%, and because this is a reduced-tax dividend, this payout will be tax-exempt, resulting in the same effect as a 27% dividend in ordinary taxable terms."

The dividend alone amounts to 87.8 billion won, and it is a one-off payout that fully utilizes the funds from the reduced-tax dividend. Going forward, dividends exceeding a 40% payout ratio on a separate (non-consolidated) basis are anticipated. The dividend per share has also been on an expansionary trend every year, rising from 50 won in 2021 to 75 won in 2022, 120 won in 2023, 250 won in 2024, and 1,361 won last year.

He added, "This year, revenue and operating profit are expected to come in at 3.5 trillion won and 199.2 billion won, respectively, indicating strong results. Although there is a valuation burden relative to net asset value, dividends from subsidiaries such as Farmstory are expected to increase, creating a virtuous cycle that will drive the share price higher."