Samsung Electronics has projected its shareholder returns for this year to reach up to 110 trillion won. The company anticipates that improved memory market conditions will significantly enhance its cash generation capabilities, leading to resources that will greatly exceed the shareholder returns from 2024 to 2025.
In a disclosure on August 21, Samsung Electronics stated that the remaining resources for shareholder returns in 2026 are expected to be around 90 trillion to 110 trillion won. This figure represents 50% of the total free cash flow (FCF) over the three years from 2024 to 2026, minus the 29.3 trillion won already implemented in 2024 and 2025. However, the company noted that this amount may vary depending on this year's business performance and investment levels.
For the third quarter of this year, Samsung plans to implement cash dividends totaling approximately 30 trillion won, including regular quarterly dividends. The specific dividend amount will be finalized at a board meeting scheduled for the end of October. Following the completion of the 2026 fiscal year, the board will make a final decision on the remaining shareholder return amount and method at a meeting in late January next year.
The remaining resources for shareholder returns will be considered comprehensively, taking into account cash dividends and share buybacks and cancellations. Samsung Electronics has conducted a total of 29.3 trillion won in shareholder returns from 2024 to last year, with cash dividends amounting to 20.9 trillion won and share buybacks and cancellations totaling 8.4 trillion won.
This projection is noteworthy as it suggests that Samsung's cash generation capabilities could significantly expand, leading to a substantial increase in shareholder return resources. With the recovery of the memory market, the company is expected to enhance its structure of sharing profit increases with shareholders through large-scale shareholder returns.
Samsung stated that when calculating FCF over the three years, it will deduct amounts related to long-term supply contract (LTA) deposits and employee performance-based stock compensation expenses. The company explained that the projected figures in this disclosure may change based on future performance, investment execution, and cash flow.
* This article has been translated by AI.
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