1. What’s the Dividend Announcement About?

HD Hyundai Electric announced a cash dividend of KRW 1,900 per share (0.39% yield) on July 22, 2025, with the payment date set for August 5th.

2. Why the Dividend? A Fundamental Analysis

Let’s analyze the rationale behind the dividend decision based on the company’s financial stability and future growth potential.

  • Positive Factors:
    • Strong order backlog (KRW 8.4939 trillion)
    • Excellent financial stability (interest coverage ratio of 44.24)
    • Stable growth foundation (80% export ratio)
  • Concerns:
    • Potential decline in profitability due to rising raw material prices
    • Foreign exchange fluctuation risks
    • Uncertainty surrounding new businesses (ESS, offshore wind power)

3. How Will the Dividend Affect the Stock Price?

While the dividend announcement could positively impact the stock price in the short term, the low dividend yield (0.39%) suggests limited upside. Long-term stock price movement will depend more heavily on fundamentals, particularly raw material prices, exchange rate fluctuations, and the performance of new businesses.

4. What Should Investors Do? Action Plan

Rather than reacting to short-term price fluctuations, investors should thoroughly analyze the company’s fundamentals and make informed investment decisions from a long-term perspective. Continuous monitoring of key variables such as raw material prices, exchange rate fluctuations, and the performance of new businesses is crucial.