Samsung to Return $72 Billion to Shareholders
The electronics giant will spend 50% of its free cash flow on the program, which includes a special dividend, following a similar move by rival SK Hynix
Samsung Electronics is expected to announce a shareholder return program worth over $72 billion, according to media reports. The company plans to spend 50% of its free cash flow on the program, which includes a special dividend.
The announcement is expected to be made after a board meeting at the end of August, where the plan will be approved. This move comes after local rival SK Hynix unveiled a 40 trillion won share buyback and cancellation plan, the largest shareholder return program announced by a publicly listed South Korean company.
SK Hynix also announced that it would allocate more than 50% of free cash flow generated between 2025 and 2027 to shareholder returns. Samsung declined to comment on the reports.
## Why it matters The move by Samsung Electronics is significant, as it shows the company's commitment to returning value to its shareholders. The program is expected to have a positive impact on the company's stock price and investor sentiment. The decision by Samsung and SK Hynix to allocate a significant portion of their free cash flow to shareholder returns also reflects the competitive landscape of the memory-chip industry, where companies are under pressure to deliver returns to investors.
The announcement by Samsung Electronics is also likely to be closely watched by investors and analysts, as it will provide insight into the company's strategy and priorities. With the program expected to be worth over $72 billion, it is likely to have a significant impact on the company's financials and its position in the market.
