Samsung Electronics’ announcement on the 28th to implement a special dividend and increase the dividend size over the next three years is interpreted as a result of the mutual interests of the major and minority shareholders. The survivors of the late Chairman Lee Kun-hee, including Samsung Electronics Vice Chairman Lee Jae-yong, urgently need to finance the inheritance tax. Only the stock inheritance tax owed by Vice Chairman Lee amounts to 11 trillion won. According to the analysis, it was considered that the voice of dividend expansion increased as individual investors increased rapidly due to the’Donghak Ant Movement’. It is believed that neglect of shareholder return could deteriorate the image of Samsung.
The national pension system has benefited the most from this special dividend. As of the end of last year, the National Pension System owned 638.69 million common stocks and 8.5 million preferred stocks of Samsung Electronics. The amount earned through dividends in the fourth quarter of this year amounted to 1,233.9 billion won in common stocks and 16.4 billion won in preferred stocks. The dividends received by major shareholders such as Vice Chairman Lee are also substantial. The dividends to Chairman Lee (holding 4.18% of common stock) and Vice Chairman Lee (holding 0.70%) are KRW488.2 billion and KRW 81.2 billion, respectively.
The share price of Samsung Electronics ended at 83,700 won, down 2.22% on the same day. As expectations for special dividends were reflected in the stock price, it was difficult to prevent the decline in the correctional market. There is also an analysis that the standard for paying special dividends for the next three years to be kept within 50% of the FCF and the annual increase in basic dividends at 200 billion won is somewhat less than market expectations.
In the market, it is pointed out that Samsung Electronics needs a’big picture’ such as large-scale new investments or mergers and acquisitions (M&A) in order to recover its share price in the 90,000 won range. Jeong Seong-han, head of the Alpha Management Center at Shinhan Asset Management, said, “Because we had to hold stocks by the end of last year to receive special dividends, today’s stock price reflects a kind of dividend loss.”
There was also a response saying, “If you look at it for a long time, it’s good news.” This is because, in the face of the’semiconductor super cycle’, Samsung Electronics’ profit scale is increasing, suggesting additional dividends every year. It is analyzed that the number of individual investors making long-term investments will increase as the attractiveness of dividends is added to the growth potential.
Reporter Song Hyung-seok/Jeon Beom-jin [email protected]
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