Samsung Electronics has unveiled its Shareholder Return Program for the period 2024-2026, following a thorough review by the Board of Directors.
After assessing the current and anticipated business landscape, investment strategies, financial structure, and ways to boost shareholder value, the Board has opted to maintain the terms of the previous three-year program.
Throughout the 2024-2026 period, Samsung will persist in returning 50% of the generated free cash flow. The annual regular dividend will stay at KRW 9.8 trillion for 2024-2026. Similar to the previous program, any remaining portion of the 50% of free cash flow after dividend payouts will be returned to shareholders. Additionally, the company may consider early returns beyond regular dividends if a significant capital surplus is anticipated after each year’s results are finalized.
Flexibility is key, and the company will contemplate implementing a new policy before the proposed one expires, taking into account M&A activities and cash positions.
Shareholders of record as of the end of 2023 will receive KRW 361 per common share and KRW 362 per preferred share, pending approval at the annual general meeting of shareholders in March. This marks the final quarterly dividend under the 2021-2023 policy, where the company committed to returning KRW 9.8 trillion annually in regular dividends as part of a total return of 50% of free cash flow.
Over the past three years, Samsung has generated a free cash flow of KRW 18.8 trillion. With the latest declared dividend, the total capital returned to shareholders will reach KRW 29.4 trillion, equivalent to 157% of free cash flow.
