[Focus] Enthusiasm for dividend stock investing expands...A comprehensive summary of promising 'tax-free & high-yield' stocks

Recently, investors' interest in dividend stocks has grown significantly, radiating investment attractiveness in the market. In particular, there is an increasing preference for stocks that offer tax-free dividends or boast stable high yields.

◆ Promising candidate companies for tax-free and reduced dividends Samsung Securities named Meritz Financial Group, Woori Financial Group, Korea Financial Group, Doosan Bobcat, Wemade, Daishin Securities, Hana Tour, and IS Dongseo as companies likely to offer tax-free dividends or implement reduced dividends this year. In addition, Megastudy Education, MC Nex, Kolmar B&H, and Korea Asset Trust are mentioned as major candidates that could carry out reduced dividends for shareholder return, drawing investors' attention.

◆ Financial, telecom, and preferred stocks draw attention for high dividend yields In the financial sector, Hana Financial Group (dividend yield of 5.58%) and Shinhan Financial Group (4.2%) are attracting investors' attention based on their high dividend yields and stable performance. Telecom and preferred stocks are also showing investment attractiveness with high dividend returns. KT recorded a dividend yield of 3.86%, and its stock price rose 18.13% this year. KT&G also saw its stock price rise 7.1%, adding to the appeal of dividend stocks. In particular, preferred stocks such as Hyundai Motor 2nd Preferred B and Korea Financial Group Preferred are favored by investors, boasting outstanding yields of 7.93% and 6.63%, respectively.

◆ Emergence of high-dividend ETFs..."Diversification is essential" Instead of investing focused on individual stocks, ETFs that diversely contain high-dividend stocks are emerging as a strong alternative. The 'KIWOOM High Dividend' and 'PLUS High Dividend' ETFs have outperformed the KOSPI's growth rate between January and April, evaluated as stable and efficient investment options.

However, it should be noted that not all companies consistently maintain high-dividend strategies. Some companies have drastically reduced or suspended dividends due to poor performance. Representatively, LG Chem's total dividends plummeted from 783.1 billion won in 2022 to 7.87 billion won in 2024, and POSCO Future M declared a dividend suspension due to deficits.

Investors this year need to pay attention to the appeal of tax-free dividends and high-dividend stocks. However, establishing a diversified investment strategy based on thorough stock analysis and understanding market trends appears to be the core strategy for securing a stable investment return.

[※ The information provided in this article is for general investment reference purposes and does not recommend the purchase or sale of specific stocks. Losses resulting from investment decisions are borne by the investor. Consultation with an expert is highly recommended. This publication is not liable legally or financially.]