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Shinhan Financial: Positive On Quarterly Dividends And Potential Rate Hike

Summary

  • Shinhan Financial's move towards quarterly dividends this year is supported by the Korean regulators' recent decision to remove the dividend cap for Korean financial companies starting from July 2021.
  • There are indications from The Bank Of Korea that an interest hike is possible this year, which is positive for Shinhan Financial's future net interest margin and net interest income.
  • The market currently values Shinhan Financial at 0.47 times P/B and 5.1 times consensus forward FY 2022 P/E, and the stock boasts a forward FY 2022 dividend yield of 5.4%.
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South Korean Won Currency.
tawatchaiprakobkit/iStock via Getty Images

Elevator Pitch

I continue to have a Bullish rating assigned to Shinhan Financial Group Co., Ltd. (NYSE:NYSE:SHG) [055550:KS].

My prior update on Shinhan Financial was published on April 20, 2021, and the company's share price rose by +9% from KRW36,800 as of April 19, 2021

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This article was written by

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11.64K Followers

The Value Pendulum is an Asian equity market specialist with over a decade of experience on both the buy and sell sides.

He is the author of the investing group Asia Value & Moat Stocks, providing ideas for value investors seeking investment opportunities listed in Asia, with a particular focus on the Hong Kong market. He hunts for deep value balance sheet bargains and wide moat stocks and provides a range of watch lists with monthly updates within his investing group.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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