1. Hyundai’s Dividend Announcement: What Happened?

On July 24, 2025, Hyundai declared a cash dividend of 2,500 KRW per share. Despite a disappointing Q1 performance, the dividend decision aims to enhance shareholder value and boost investor sentiment. However, securing funds for the ‘2030 Strategy’ and the potential for continued weak performance remain concerns.

2. Why the Dividend Decision?

Hyundai aims to provide direct returns to shareholders and demonstrate confidence in its financial stability through this dividend. It also seeks to alleviate concerns about short-term performance and improve investor sentiment. However, the resulting decrease in cash flow due to dividend payments could hinder the ‘2030 Strategy’s’ progress.

3. Impact on Hyundai’s Stock Price

While the dividend decision may positively impact the stock price in the short term, the weak Q1 results, uncertainties surrounding the ‘2030 Strategy,’ and external factors can increase stock volatility. External factors like the USD/KRW exchange rate, interest rate fluctuations, and raw material prices directly impact Hyundai’s profitability, while the success of the ‘2030 Strategy’ will determine its long-term fundamentals.

4. What Should Investors Do?

  • Focus on a long-term investment strategy rather than reacting to short-term price fluctuations.
  • Carefully analyze the upcoming Q2 earnings release and the specific implementation plans and progress of the ‘2030 Strategy.’
  • Pay attention to risk management considering external environment changes.