National Pension 1.2 trillion revenue increase to Samsung Electronics’ all-time dividend

The National Pension Service is expected to make a profit of 1 trillion won as Samsung Electronics decides to implement the largest dividend ever, including special dividends.

Samsung Electronics held a board meeting on the 28th and decided to pay a one-time special dividend of 1.07 trillion won (1578 won per share).

This is in accordance with the promise to give back additional funds in the case of remaining financial resources excluding regular dividends of 28 trillion and 9 trillion won from the free cash flow for the three years from 2018 to 2020.

When combined with regular dividends in the fourth quarter, the special dividend is KRW 1932 per share for common stock and KRW 1933 per share for preferred stock, and the total dividend amount is KRW 13,124.3 billion. As of the end of 2020, Samsung Electronics is scheduled to pay the shareholders in April after approval at the general shareholders’ meeting.

As a result, the national pension has raised dividend income in trillions. As of the end of last year, the national pension was 638.68 million 7780 shares of Samsung Electronics’ common stock, with a share of 10.7%. Through this, the national pension will receive a dividend of KRW 1,233.9 billion. Including a dividend of 16.4 billion won in preferred stocks, the total amount is 1.25 trillion won.

Meanwhile, Samsung Electronics decided to maintain the policy of returning 50% of free cash flow (FCF) to shareholders as before for the next three years. It was decided to raise the regular dividend to 9.8 trillion won per year. Earlier, Samsung Electronics paid 9.6 trillion won in dividends every year from 2018 to 2020.

After paying regular dividends, it has also decided to maintain a policy of additionally returning remaining resources within 50% of free cash flow for three years. From this year onwards, we plan to clarify the amount of remaining resources by sharing the annual free cash flow performance every year, and actively review the early return of some of them when a meaningful amount of remaining resources occurs.