According to the Korea Exchange of the 3rd, domestic and foreign stock markets are stagnating due to recent increases in U.S. Treasury yields and the risk associated with China’s Hengda Group. Four of the six thematic stock market indexes were high dividend-related indexes. With rising U.S. Treasury yields and increased volatility in the domestic stock market, investors are paying more attention to high-dividend stocks.
The “KOSPI High Dividend 50” index rose by 3.67% during this time period. Similarly, the “KRX-IHS Markit KOSPI 200 High Dividend Prediction 50 (0.38%)”. The “KRX-IHS Markit KOSPI 200 High Dividend 50 TR (0.43%)” indices rose.
KOSPI High Dividend 50 Index consists of 50 high dividend-paying stocks. These include telecommunications stocks such as SK Telecom and KT and financial stocks such as KB Financial, Shinhan Financial Group and Hana Financial Group. In addition to these companies, the index includes Hyundai Motor, Kia, POSCO, KTG and Yulchon Chemical.
As the year-end dividend season approaches, concerns about the economy peaking and U.S. Treasury yields rising.
Investors are expecting stronger policies on corporate shareholder returns. Listed companies are expected to perform well this year, increasing the possibility of additional dividends. The total provisional dividends of domestic listed companies exceeded the $3.3 billion mark at the end of June.
Jae-sun Lee, research associate at Hana Financial Investment, says, “Low volatility and high dividend stocks have performed very well during a period of high inflation and concerns about the economic peak.”
Foreign high-dividend ETFs are also getting attention
CNBC: “Dividend stocks and low-volatility ETFs may reduce portfolio volatility and increase stable returns as the outlook for stocks is dim”. The Vanguard High Dividend Yield ETF (VYM) has returned 17.08% this year.
Demand for funds that pay monthly dividends increased, such as Invesco Preferred (PXG), which invests in high-dividend U.S. stocks, and Global X Super Dividend (SDIV), which invests in 100 high-dividend stocks.