Maintain 50% free cash flow return policy
Dividend increase to 9.8 trillion won every year
Samsung Electronics has decided to increase the regular dividend amount to 9.8 trillion won per year from this year to 2023. This is 200 billion won higher than before. In addition, the company decided to pay a dividend of 1932 won per share based on common stock by adding a special dividend according to the shareholder return policy. In the case of preferred stocks, a special dividend of 1578 won is added to the existing settlement dividend of 355 won and 1933 won per share.
Samsung Electronics held a board meeting on the 28th and announced that it has confirmed the shareholder return policy from 2021 to 2023. For the next three years, it has maintained the policy of returning 50% of the free cash flow (FCF) to shareholders as before, while increasing the amount of regular dividends to 9.8 trillion won per year.
Special dividends are scheduled to be paid in April after approval at the general shareholders’ meeting to shareholders of 1932 won per common share and 1933 won per preferred share in addition to regular dividends in the fourth quarter. The total amount of dividends including this special dividend amounted to KRW 13,124.3 billion. The dividend rate for common stocks is 2.6% and the dividend for preferred stocks is 2.7%.
After paying regular dividends, Samsung Electronics also decided to maintain a policy of returning additional financial resources if remaining within 50% of free cash flow for three years.
Furthermore, from this year onwards, we plan to clarify the amount of remaining resources by sharing the annual free cash flow performance every year, and to actively consider returning some of them early if a meaningful amount of remaining resources is generated.
Yun-ho Choi, head of Samsung Electronics’ management support department (president), said, “Even in the face of many difficulties such as Corona 19, our employees and stakeholders have been able to pay special dividends by working hard.” While promoting M&A, we will improve shareholder value by achieving achievements in fields such as ESG and compliance.”
Copyright holder © Market economy Unauthorized reproduction and redistribution prohibited