In today’s briefing:
- Korea Local Banks: New Dividend Tax Effectively Locks in a De Facto Minimum Yield Play
- Asian Dividend Gems: Korea District Heating Corp (KDHC)
Korea Local Banks: New Dividend Tax Effectively Locks in a De Facto Minimum Yield Play
- We’ve got a locked-in floor on ’26 DPS and clear upside, providing a solid dividend yield baseline—ideal for leaning into aggressive trade setups.
- We can lean into spot longs with covered calls, but yields (especially KB, Shinhan) aren’t yet compelling. A pullback before the ’26 dividend run is a prime entry window.
- Plus, a bank long-short: long KB/Shinhan, short Hana/Woori. KB and Shinhan face payout increases, with ’26 guidance in 4Q25 earnings as the catalyst.
Asian Dividend Gems: Korea District Heating Corp (KDHC)
- There are three major reasons why we like Korea District Heating (071320 KS). First, the company has been sharply improving its shareholder return program (especially for dividends).
- The BOD members of KDHC and other major Korean utility companies are increasingly likely to focus on improving shareholder value by raising prices.
- Its valuations remain attractive. It is trading at P/E of 3.2x, P/B of 0.4x, and EV/EBITDA of 6.8x based on 2025 consensus estimates.
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