Stormtech is showing strong performance. The news that it decided on a semi-annual differential dividend of 220 KRW per share seems to have had an impact.
As of 10:03 AM on the 30th, Stormtech was trading at 7,510 KRW, up 510 KRW (7.29%) compared to the previous trading day.
On this day, Stormtech, a company specializing in manufacturing water purifier components, announced that it would implement a differential dividend giving more dividends to minority shareholders than to major shareholders.
Stormtech held a board meeting on the 29th of this month and disclosed that it would pay a cash dividend of 220 KRW per common share as the 2024 interim dividend. The record date is set for the 13th of next month, and the payment date is scheduled for the 28th of the same month.
With this differential dividend, ordinary shareholders will receive a dividend of 220 KRW per share, while the largest shareholders and related parties will receive 200 KRW per share. For the largest shareholders and related parties, this means receiving approximately 190.65 million KRW less in dividends.
A differential dividend is a method where major shareholders forgo all or part of their dividends and transfer them to other minority shareholders. Generally, it is considered a shareholder-friendly policy because it provides more dividends to minority shareholders than to major shareholders.
The company explained that since the largest shareholders and related parties hold a relatively high share ratio, it decided on this differential dividend to provide practical benefits to ordinary shareholders.
A Stormtech representative said, “This differential dividend was carried out as part of the shareholder return policy announced on February 29. We will continue to actively increase activities to enhance both the company’s and shareholders’ value for shareholders who trust and support Stormtech.”
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