1 Income Stock to BANK ON Now

NYSE: KB | KB Financial Group Inc. ADR News, Ratings, and Charts

KB – One of the best ways to address risk is through diversity. With a strong balance sheet and solid earnings KB Financial (KB) provides a diverse option in the banking sector, with international exposure to mitigate some of the risk we’ve seen in U.S. banking this year.

Regional and small banks have been under a microscope recently after the March failures of Silicon Valley and Signature bank. But wreckless management, and lax oversight, at a few banks should not turn inventors off on solid income producers like KB Financial Group (KB - Get Rating). 

Though KB trades on the New York Stock Exchange it is actually based in South Korea. The company operates in a number of segments, including retail and corporate banking, and is also active in the credit card and insurance business.  

One of the things I like about KB is that it provides some exposure in South Korea, away from the banking issues that have plagued U.S. regional banks. While it is subject to U.S. regulations, it operates much of its business in a differentiated interest rate regime.

While KB is rated a B overall in our POWR Ratings, importantly for an income producing stock its best ranking is in the Stability component. The last thing I want in an income stock is risk to the dividend. 

KB has a mix of mortgage, general obligation and small home and office loans (SOHO), but mortgages account for only about 27% of its overall portfolio. And, over the past four years the bank has essentially doubled assets under management. 

From a valuation perspective, the stock trades at just 4.8x current earnings, and 3.8x projected earnings. As of 2Q 2023, KB’s net interest increased 5.4% YoY, with net operating profit increasing 40.4% YoY. 

In its earnings release, CFO Scott YH Seo, said profit was pretty evenly spread over “growth of interest and commissions income and supported by cost control efforts”. I like to see a good balance in financial institution earnings, which helps alleviate a lumpy earnings picture over time.

The current dividend yield is 4.42% on most recently reported earnings of $8.60 per share. 

This year the stock has traded in a range from just over $35 to just over $48. It currently sits at $40, and could be added to if it drifts back toward $35 as we head into fall.  

What To Do Next?

Above I featured just 1 of my favorite income stocks. My guess is that you’d like to discover even more attractive income stocks. 

All you need to do is check out my POWR Income Insider portfolio. 

This is backed by a proven quant strategy that has produced an average annual return of +24.3%. It even generated surprising gains in 2022 when the bear market came to town. 

If you would like to learn about this consistently successful income stock approach…then just click the link below:

Discover POWR Income Insider now > 

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


KB shares were unchanged in after-hours trading Friday. Year-to-date, KB has gained 11.99%, versus a 16.81% rise in the benchmark S&P 500 index during the same period.


About the Author: Jay Soloff


Jay is a former professional market maker who cut his teeth trading on the floor of the CBOE. With more than 20 years of experience trading and investing, his focus is on making professional strategies accessible to everyone, which is exactly what does in his highly profitable POWR Income and POWR Stocks Under $10 investment advisory services. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
KBGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Stock Market Update: It’s Complicated!

The S&P 500 (SPY) may have bounced 17% from recent lows, but the outlook for stocks from here is...in a word...COMPLICATED. Read on to get Steve Reitmeister full market outlook and trading plan for this complicated market environment.

Becoming More Bullish on Stocks, But...

Stocks are on a roll with the S&P 500 (SPY) up more than 10% from the recent lows. Before you start getting too giddy, you should read this updated market outlook and trading plan Steve Reitmeister.

Stock Market Held Hostage

Uncertainty is the term most often applied to this stock market. Uncertainty over tariffs. Uncertainty of whether the S&P 500 (SPY) will fall into bear territory. Uncertainty over what happens next. Steve Reitmeister dives into the uncertainty to make sense of the market in this week’s commentary...

Stock Market Standing on the 50 Yard Line

Steve Reitmeister contemplates where the stock market stands now and what happens next in trying to stay on the right side of the market action. One path points to bear and one to new highs for the S&P 500 (SPY). Which will it be?

Bear or Bull Market?

The S&P 500 is on the brink of bear market territory...but that outcome is not a given at this time. Steve Reitmeister shares insights gleaned from his 45 years of investing to shine a light on current conditions along with his top picks...

Read More Stories

More KB Financial Group Inc. ADR (KB) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All KB News