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Dividends Paid by Listed Companies Unlikely to Increase Much This Year
Due to Poor Business Performance
Dividends Paid by Listed Companies Unlikely to Increase Much This Year
  • By Yoon Young-sil
  • December 23, 2019, 09:04
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Listed South Korean companies are expected to increase their dividend payments this year.

Market research firm FnGuide said on Dec. 22 that 235 KOSPI- and KOSDAQ-listed companies with a fiscal year ending in December are showing an average dividend per share (DPS) estimate of 1,383 won for this year. For reference, the average DPS of the companies was 1,351 won last year.

The 235 companies have been analyzed by at least three securities companies this year and paid cash dividends in the previous business year. They posted an average dividend yield estimate of 2.04 percent on Dec. 18. The average was 1.96 percent last year.

Although the estimates do not cover all listed companies, listed South Korean companies are expected to increase their dividend payments this year. According to Korea Exchange, the total cash dividend payment was 31,943.7 billion won in 2018, which is divided into 30,400.4 billion won by KOSPI-listed and 1,543.3 billion won by KOSDAQ-listed companies.

Last year’s total is divided into 9,106.1 billion won in interim and quarterly dividend payment and 22,837.7 billion won in fiscal year-end dividend payment. The total dividend payment for this year will add up to 32,710.3 billion won if this year’s dividend increases 2.4 percent year on year as estimated by securities companies.

According to the Financial Supervisory Service, 58 listed companies already paid an interim and quarterly dividend of 9,319.9 billion won this year. If listed companies’ fiscal year-end dividend payment is maintained at last year’s level, the total annual dividend payment will reach a record high.

However, experts point out that it will be difficult for the companies to increase the payment due to their poor business performance. The annual net profit of 235 companies that paid dividends last year and have dividend estimates for this year is estimated at 92,096.7 billion won for this year whereas their annual net profit totaled 129,830.5 billion won last year.