What’s Happening with KT&G?
KT&G is currently reviewing a plan to increase its dividend per share to at least KRW 6,000 for the fiscal year 2025. This represents a significant increase from the previous dividend and is expected to bring substantial benefits to shareholders.
Why the Dividend Increase?
This dividend increase consideration stems from KT&G’s strong performance. As of the first half of 2025, consolidated revenue reached KRW 3.039 trillion, a year-on-year increase of 11.9%. The company recorded high growth not only in its tobacco business but also in real estate. Based on these solid fundamentals, KT&G is pursuing a proactive shareholder return policy.
What’s the Impact of the Dividend Increase?
- Positive Impact on Stock Price: The dividend increase is likely to boost investment appeal and drive stock price appreciation.
- Improved Investor Sentiment: The reinforced shareholder return policy can enhance investor confidence and encourage long-term investment.
- Competitive Advantage: Higher dividend yields compared to competitors will further highlight KT&G’s investment attractiveness.
What Should Investors Do?
- Maintain a Long-Term Perspective: Considering KT&G’s growth potential and dividend attractiveness, long-term investment can be considered.
- Close Monitoring: Continuously monitor changes in macroeconomic indicators, company performance, and the sustainability of the dividend policy.
- Prudent Investment Decisions: It is crucial to review the official announcement of the final dividend amount before making investment decisions.