Samsung Electronics "Maintaining 50% Shareholder Return of Free Cash Flow Until 2023... Regular Dividends of 9.8 Trillion Won"

Announcement of Shareholder Return Policy for 2021-2023 on the 28th
Increase from 9.6 Trillion KRW in Regular Dividends during 2018-2020

[Image source=Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Samsung Electronics announced on the 28th that it will maintain its existing policy of returning 50% of free cash flow (FCF) to shareholders over the next three years starting this year, while increasing the regular dividend amount to 9.8 trillion won.

Samsung Electronics held a board meeting on the same day and confirmed the shareholder return policy for 2021-2023, announcing this decision. This announcement comes as Samsung Electronics' 2018-2020 shareholder return policy, announced in 2017, has ended.

Samsung Electronics decided to maintain the policy of returning 50% of FCF to shareholders as before, and after paying regular dividends, if there is remaining capital within 50% of the FCF over three years, it will be additionally returned. However, the regular dividend amount, which was 9.6 trillion won annually from 2018 to last year, will be increased to 9.8 trillion won per year.

Additionally, Samsung Electronics decided to pay a one-time special dividend of 1,578 won per share, totaling 10.7 trillion won, in accordance with the promise to additionally return remaining capital from FCF after excluding the regular dividend of 28.9 trillion won over the three years from 2018 to 2020. The special dividend will be combined with the fourth-quarter regular dividend and, after approval at the shareholders' meeting, will be paid to shareholders in April, with common stock dividends of 1,932 won per share and preferred stock dividends of 1,933 won per share as of the end of 2020.

Samsung Electronics stated, "Starting this year, we plan to share the annual free cash flow performance every year to clarify the size of the remaining capital and actively consider early return of part of it if a meaningful amount of remaining capital occurs."