Introduction: It’s Time to Look Beyond Dividends to Growth
In the 2025 Korean stock market, dividend stocks are gaining attention. Unlike in the past, when investors simply chose stocks with high dividend yields, it is now essential to select companies that offer both dividend growth and earnings improvement momentum to achieve real investment returns. Furthermore, capitalizing on the buying patterns of foreign and institutional investors before the ex-dividend date can provide an added bonus of capital gains.
Today, we will comprehensively analyze current dividend yields, dividend growth potential, earnings forecasts, and the possibility of capital gains before the ex-dividend date to select high-dividend growth stocks worth investing in from the second half of 2025 through 2026.
Analysis Criteria: Why These Stocks?
This analysis was based on four key criteria:
- Dividend Yield of 6% or Higher: A level that is attractive for its absolute dividend return alone.
- History of Dividend Growth or Increase: We prioritized companies with a 1- or 3-year dividend growth rate of over 20% or those that have recently announced a significant increase.
- Prospects for Earnings Improvement: We focused on sectors and companies expecting operating profit growth or an industry turnaround in 2025-2026.
- Potential for Capital Gains Before Ex-Dividend Date: We selected stocks with high foreign and institutional ownership and a historical pattern of price increases before the ex-dividend date.
TOP PICK #1: Kangwon Land (Casino Monopoly + Stable Dividends)
- Dividend Yield: 6.87% (Dividend: ₩1,170)
- Payout Ratio: 51.32%
- ROE: 12.08%
- PBR: 0.82x
- Investment Point: As the only casino for locals in Korea, Kangwon Land has achieved a successful earnings turnaround since 2024. Its Q2 2025 operating profit is projected at ₩73.3 billion, driven by an increase in visitors and deregulation. The 2025 dividend of ₩1,170 is a record high, with a reasonable payout ratio of 51.32%. The dividend trend shows a sharp recovery from ₩0 in 2022 (due to COVID-19). With an ROE above the industry average and an undervalued PBR of 0.82x, analysts are setting target prices of ₩22,000-₩24,000, offering potential for both dividends and capital appreciation.
TOP PICK #2: LX International (Resource & Logistics Recovery + Dividend Growth)
- Dividend Yield: 6.57% (Dividend: ₩2,000)
- Payout Ratio: 40.94%
- ROE: 6.57% (Estimated)
- PBR: 5.97x
- Investment Point: LX International has a stable business structure with a diversified portfolio in resource development (coal, nickel), trading, and logistics. The 2025 dividend of ₩2,000 is a 67% increase from 2023 and is supported by a stable payout ratio of 40.94%. Its 12-month forward P/E of 4.7x and 6.6% yield are highly attractive. An earnings recovery is expected from Q3, driven by a rebound in logistics volume and stabilization of coal prices.
TOP PICK #3: Hyundai Marine & Fire (Insurance Major + Dividend Resumption Hopes)
- Dividend Yield: 7.34% (Based on 2024, No dividend in 2025)
- Payout Ratio: 28.16%
- ROE: 7.38%
- PBR: 0.40x
- Investment Point & Caution: After over 20 years of consistent dividends, the company cut its dividend in 2025. The yield shown on Naver Securities is based on 2024 data. The cut was due to an increase in surrender refund reserves and a decline in the K-ICS ratio. While short-term dividend income is not expected, the stock is attractive for long-term investors due to its low PBR of 0.40x and the potential for dividend resumption after 2026.
TOP PICK #4: Macquarie Korea Infrastructure Fund (Infra Fund + Semi-Annual Payouts)
- Dividend Yield: 6.82% (Distribution: ₩759)
- Payout Ratio: 6.82% (Fund characteristic)
- Investment Point: This fund offers a stable, semi-annual cash flow from its infrastructure assets. Its distributions have been consistently maintained in the ₩740-₩770 range for three years, demonstrating high sustainability. As it distributes over 90% of its operating income, the effective payout ratio is high. It is an excellent choice for investors who prioritize regular income.
TOP PICK #5: Dongkuk Steel (Steel Recovery + Dividend Resumption)
- Dividend Yield: 6.97% (Dividend: ₩600)
- Payout Ratio: 85.34%
- ROE: 2.04%
- PBR: 0.23x
- Investment Point: After a two-year hiatus, Dongkuk Steel has confirmed a ₩600 dividend for 2025. This normalization, coupled with the steel industry’s recovery, signals potential for dividend growth. Its PBR of 0.23x is the lowest in the sector, indicating a significant undervaluation.
Strategy for Capital Gains Before the Ex-Dividend Date: When to Buy and Sell
By leveraging the patterns of foreign and institutional investors, you can aim for capital gains.
- Buying Time: 2-4 weeks before the dividend cutoff date (2 business days before the record date). Mid-November to early December is ideal.
- Selling Time: On the dividend cutoff date or the ex-dividend date. The stock price rises by an average of +0.41% on the cutoff date and falls by -1.07% on the ex-dividend date, making it advantageous to sell at the closing price on the cutoff date or early on the ex-dividend date.
- 2025 Key Ex-Dividend Date: Expected on Monday, December 29, with the buying deadline on Friday, December 26.
Investment Strategy Summary: Sample Portfolios
- Stability-Focused: Kangwon Land (40%) + Macquarie Infra (30%) + LX International (30%)
- Balanced Growth: Kangwon Land (30%) + LX International (40%) + Dongkuk Steel (30%)
- Dividend Resumption (Long-Term): Hyundai M&F (50%) + Kangwon Land (30%) + LX International (20%)
- Capital Gains (Short-Term): Kangwon Land + LX International (Buy mid-Nov → Sell late-Dec)
Conclusion: The Truth Told by Numbers
The era of investing in high-dividend stocks has evolved from simply looking at yields to a comprehensive approach that includes dividend growth, earnings improvement, and capital gains. Kangwon Land is the most balanced choice with its monopoly business, earnings turnaround, and record-high dividend. LX International is attractive for long-term investment due to its resource recovery and dividend sustainability.
While Hyundai Marine & Fire is not suitable for short-term gains, it presents an opportunity for long-term investors with its low PBR of 0.40x and hopes for a 2026 dividend resumption. By timing your purchases before the ex-dividend date, you can aim for both dividend income and capital gains. Now is the time to start making smart investments with genuine high-dividend stocks proven by Naver Securities’ real-time data.
References
- Naver Securities Dividend Ranking (Primary Data Source): https://finance.naver.com/sise/dividend_list.naver
- Kangwon Land Investment Info & Analysis: https://comp.fnguide.com/SVO2/ASP/SVD_Main.asp?gicode=A035250
- LX International Dividend History & Earnings: https://kr.investing.com/equities/lg-international-corp-dividends
- Hyundai Marine & Fire Dividend & Earnings Info: https://comp.fnguide.com/SVO2/ASP/SVD_Main.asp?gicode=A001450
- Ex-Dividend Date Capital Gains Analysis: https://www.mk.co.kr/news/stock/11408311