On the 28th, when Samsung Electronics announced that it recorded 61.5 trillion won in sales and 9.5 trillion won in operating profit in the fourth quarter of last year, the flag of Samsung Electronics’ Seocho office building in Seocho-gu, Seoul is flying in the wind. Photo = Newsis
Shareholders who held Samsung Electronics stocks until the end of last year are expected to receive more than expected dividends sooner or later. According to the shareholder return policy, Samsung Electronics announced that it will pay an additional 1.07 trillion won as a one-time special dividend in addition to the existing dividend.
On the 28th, Samsung Electronics announced that it will make special dividends in line with the existing shareholder return policy, which is to return 50% of the free cash flow (FCF) to shareholders. The existing settlement dividend is 354 won based on common stock, but it is decided to pay 1,932 won per share by adding 1,578 won as a special dividend using residual resources. Preferred stocks receive KRW 1,933 per share, combining the existing settlement dividend of 355 won and special dividend of 1,578 won. This is far exceeding the special dividend (around 1,000 won) originally expected by stock prices.
Samsung Electronics plans to pay dividends in April after approval at the general shareholders’ meeting. As of the end of 2020, shareholders are eligible for payment, and if they bought Samsung Electronics stock by December 28 last year, they can receive dividends. Conversely, if the stock was sold before or after that day, it is not eligible for dividends.
The dividend income tax withholding tax rate is 15.4% (national tax 14% + local income tax 1.4%). For example, if you have 100 shares of Samsung Electronics’ common stock, you will not receive 19,3,200 won as a dividend, but 16,3,448 won remaining after deducting 15.4% of the dividend income tax will be deposited into your securities account. Nevertheless, Samsung Electronics’ shareholders with 100 shares will receive 130,000 won (assuming 100 shares) as a special dividend.
Samsung Electronics’ dividend expansion is expected to continue. On this day, Samsung Electronics announced a policy to return shareholders for the next three years. The existing policy of returning 50% of the free cash flow to shareholders will remain the same, but the annual dividend will be raised from 9.6 trillion won to 9.8 trillion won. Because I did. In addition, after paying regular dividends, if residual resources are generated within 50% of the free cash flow for three years, the policy will be maintained as a special dividend.
Meanwhile, the dividend received by the total family from this special dividend is expected to exceed 1 trillion won. It is more than doubled from 2019 (490 billion won). Dividends are expected to be used to finance the family’s inheritance tax. The inheritance tax on the stock assets left by Samsung Electronics Chairman Lee Kun-hee to his family (18 trillion 963 billion won) reaches 11 trillion won. As the family of Samsung Electronics has to cover the inheritance tax with dividends for the next five years, there is a prospect that Samsung’s special dividends may increase in the future.
Kim Dong-wook reporter [email protected]
News directly edited by the Hankook Ilbo can also be viewed on Naver.
