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Here’s how Samsung will return money to shareholders for 2024-2026

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Last updated: January 31st, 2024 at 08:14 UTC+01:00

Like any major corporation, enhancing shareholder value is an area of focus for Samsung Electronics. The company announced its Q4 2023 guidance today and also highlighted its shareholder return program for 2024-2026.

The shareholder return program is put in place following an in-depth review by the company's board. All members carefully evaluate the current and projected business environment before deciding how money will be returned to shareholders.

Samsung commits to regular dividend payments for shareholders

Based on its review of the business environment, Samsung's investment strategies and financial structure, the company's board has decided to maintain the terms of the previously announced shareholder return program.

This means that Samsung will continue to return 50% of its free cash flow generate between 2024 to 2025 to its shareholders. Samsung Electronics will continue to provide KRW 9.8 trillion won cumulatively as dividends during this period. In line with the previous program, Samsung Electronics will also return any remaining portion of the 50% of free cash flow after dividends are paid.

Samsung Electronics will also consider providing an early return in addition to the regular dividents if it sees the potential for a large surplus of capital to provide returns after finalizing each year's returns. What this means in simple terms is that if there's more free cash flow, Samsung can provide additional payouts over and above the regular dividend.

All shareholders of record by the end of 2023 will receive KRW 361 per common share and KRW 362 per preferred share as dividend following the approval at the company's annual general meeting of shareholders in March 2024.

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