Samsung Electronics expects its shareholder returns for 2026 to reach as much as 110 trillion won ($79.54 billion), including 30 trillion won in cash dividends in the 3rd quarter.
The projected 110 trillion won would be more than 5 times Samsung’s previous record of 20.3 trillion won in shareholder returns, set in 2020.
Like rival SK Hynix, Samsung is facing pressure from shareholders to share more of the gains from record profits, as the AI boom continues to drive demand for chips.
Samsung also said it has bought back shares worth 15 trillion won for employee stock bonuses. Its board will decide the remaining payouts in January 2027. Cash dividends, further share buybacks and share cancellations will be considered.
Under its 2024 to 2026 shareholder return policy, Samsung has committed to returning 50% of its free cash flow accumulated over the 3 year period to shareholders.
Samsung shares rose 3.5% on Friday, while SK Hynix gained 4.4%. The wider market rose 0.8%.
Sanjeev Rana, head of research at CLSA Securities Korea, said the shareholder returns should “help set a floor for the share price,” although he noted that some investors may have expected the full package to be announced at once.
“Also, from a share price perspective a buyback would have been better as it would have created additional demand for shares in the market,” he said.
SK Hynix said this week that it will buy back and cancel 40 trillion won of treasury shares and allocate more than 50% of its free cash flow generated between 2025 and 2027 toward shareholder returns.
Samsung’s chip profits have also surged. In the 2nd quarter, its chip profit jumped more than 250 times to 89 trillion won. Its shares have risen 300% over the past 12 months but have declined from a record high reached in June amid concerns that AI spending could slow.
Samsung and SK Hynix are expected to hold a combined $263 billion in net cash by the end of the year. This is more than 2 times Nvidia’s estimated $102 billion and higher than the combined cash held by the other 6 “Magnificent Seven” US technology companies.
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