Record High Dividends Amid Economic Challenges

In a remarkable demonstration of resilience, KOSPI-listed companies with a December fiscal year-end have announced a significant surge in cash dividends, reaching a five-year high in 2024. Nearly 3 trillion won (approximately $2.06 billion) was distributed, marking a 10.5% increase from the previous year's total of 27.5 trillion won.

Dividend Yields Reach New Heights

The average dividend yield for common and preferred stocks soared to 3.05% and 3.70%, respectively, the highest in five years. This surge comes as government bond yields decline, narrowing the yield gap with common stock dividends to just 0.12 percentage points.

Sector-wise Performance and Shareholder Commitment

Leading the charge, the finance sector boasted an average dividend yield of 3.80% over the past five years, with electricity and gas, and telecommunications following closely. Notably, 454 companies have maintained their dividend payments for over five consecutive years, underscoring a steadfast commitment to shareholder returns.

KOSDAQ Market Also Sees Growth

Not to be outdone, the KOSDAQ market recorded its own highs, with 612 companies paying out 2.3 trillion won in cash dividends, a 12.7% increase from the previous year, despite an average stock return of -13%.