KT's Dividend Strategy Shines Amid Market Volatility... Leads Big Three Telecoms in Shareholder Returns and Yield

KT's Dividend Yield Tops 5%, Raised Despite Setbacks

Minimum Dividend of 2,400 Won per Share Guaranteed in a Fixed Amount

Last Year's Shareholder Returns Totaled 831 Billion Won, Highest in the Industry

Amid recent volatility in the stock market, telecom stocks, which are considered dividend stocks, are attracting attention. KT, in particular, boasts the highest annual dividend yield and the largest shareholder returns among the three telecom companies, thanks to differentiated policies such as setting a dividend floor in terms of a fixed amount.

KT CEO Park Yoonyoung presents the “AX Platform Company Business Strategy” at the Eastpole Pullman Hotel in Gwangjin-gu, Seoul, on July 6. 2026.07.06 Photo by Yoon Dongju

According to the securities market and the telecom industry on Nov. 4, KT's annual dividend yield was 5.05%, based on the closing price on Nov. 3, surpassing SK Telecom's 4.43% and LG Uplus's 4.47%. KT is the only one of the three telecom companies to maintain a yield of 5% or higher.

A key strength of KT's shareholder return policy is its guarantee of a minimum dividend per share (DPS) in a fixed amount. The three major domestic telecom companies operate medium-term shareholder return policies that return a certain portion of net income to shareholders. While their payout ratios are similar, at around 50% of net income, dividends can also fall when earnings deteriorate.

In response, KT set its minimum annual DPS for this year at 2,400 won, 22.4% higher than the previous policy floor of 1,960 won, providing a firm floor for its dividends. Compared with LG Uplus, which set its 2023 level of 650 won as its floor, and SK Telecom, which has no separate minimum DPS, KT offers investors the greatest predictability.

KT also bases its dividends on adjusted net income, excluding non-cash and non-recurring gains and losses, to minimize fluctuations caused by one-off items. This approach continued this year: at a board meeting on Oct. 13, when the KOSPI plunged more than 5%, KT decided to pay equal quarterly dividends of 600 won per share for the first three quarters, totaling approximately 142 billion won. The third-quarter dividend will be paid on Nov. 12.

KT's track record of honoring its dividend commitments during crises is another strength. In 2024, when separate net income plunged due to one-off costs from a large-scale workforce restructuring, KT raised its DPS from 1,960 won to 2,000 won, taking investor confidence and its financial position into account. In fact, since 2022, KT has been the only one of the three telecom companies to increase its dividend in a year when earnings declined. Last year, despite the fallout from a personal data breach, it paid 600 won per share in each of the first four quarters, raising its annual DPS by 20%.

Under its plan to buy back and cancel 1 trillion won worth of treasury shares from 2025 to 2028, KT is handling approximately 250 billion won worth of shares each year. It completed this year's planned buyback in September. Share buybacks directly reduce the number of shares eligible for dividends, making it possible to increase the dividend per share in the future with the same amount of funds. Last year, KT's total shareholder returns, including dividends and share buybacks, amounted to 831 billion won, the largest among the three telecom companies.

Thanks to its diverse shareholder return measures, KT also meets the tax criteria for a high-dividend company and is eligible for separate taxation of dividend income, starting with dividends paid this year. Foreign ownership of KT has also reached the legal limit of 49%. A KT official said, "As stock market volatility increases, the key question shifts from 'How much will it rise?' to 'What can I count on receiving?'" The official added, "Telecom stocks are an industry that offers an answer to that question. KT's policy of promising dividends in fixed amounts and honoring those commitments even in years when earnings fall or incidents occur will give investors a basis for 'predictability' to rely on in an uncertain market."

This content was produced with the assistance of AI translation services.