Samsung Electronics expands dividends
1.3 trillion won per share, including special dividends, 566 won
Dividend payout ratio of 25%, meets the standard of high dividend listed companies
Consider additional returns when remaining resources arise
Samsung Electronics’ board of directors recently resolved an additional dividend of 1.3 trillion won at the end of the year in 2025. The fourth quarter dividend is scheduled to be paid in April following final approval at the regular shareholders’ meeting in March. The photo shows Samsung Electronics Suwon Digital City. [사진 삼성전자]
On January 29, Samsung Electronics’ board of directors resolved a year-end dividend of 566 won per share of common stock and 567 won per share of preferred stock. According to Samsung Electronics’ shareholder return policy for three years from 2024 to 2026, the total annual regular dividend is KRW 9.8 trillion, and the dividend amount per quarter is KRW 2.45 trillion.
In order to meet the requirements for separate taxation of dividend income from high-dividend companies introduced by the government last year to expand dividends and promote capital market revitalization, Samsung Electronics’ board of directors resolved to pay an additional dividend of 1.3 trillion won at the end of the year in 2025 by utilizing resources within the shareholder return policy. The fourth quarter dividend is scheduled to be paid in April following final approval at the regular shareholders’ meeting in March.
In addition, the cancellation schedule for currently held treasury stocks will be confirmed through board approval and disclosure within the first quarter of 2026.
In addition, when the performance is completed in 2025, the company’s free cash flow (FCF) is approximately KRW 36.5 trillion, and shareholder return resources (50% of FCF) are approximately KRW 1.83 trillion.
Based on this, Samsung Electronics plans to faithfully implement the shareholder return policy promised to shareholders through regular dividends of 9.8 trillion won in 2025, additional dividends of 1.3 trillion won, and cancellation of 6.6 trillion won of treasury stocks purchased in 2025, excluding those purchased for employee stock compensation, of 8.2 trillion won.
Samsung Electronics announced that it would carry out a special dividend for the fourth quarter of 2025 worth 1.3 trillion won. Adding the special dividend for the fourth quarter, the quarterly dividend increases to approximately 3.75 trillion won, and the total annual dividend amounts to 11.1 trillion won. Accordingly, the dividend amount per share increased from 363 won in 2024 to 566 won in 2025 as of the fourth quarter, and the total annual dividend during the same period increased from 1,446 won to 1,668 won. Samsung Electronics’ special dividend is the first in five years since the fourth quarter of 2020, when it paid 10.7 trillion won in addition to regular dividends.
Through this special dividend, Samsung Electronics has met the requirements for a high dividend listed company set by the government. To meet the requirements for a high-dividend listed company, ▶ first of all, the company must have no decrease in cash dividends compared to the previous year, ▶ the dividend payout ratio must be more than 40%, or ▶ the dividend payout ratio must be more than 25% and the dividend amount must increase by more than 10% compared to the previous year. The dividend payout ratio is calculated by dividing the total dividend amount by net profit and multiplying it by 100. Reflecting this special dividend, Samsung Electronics’ dividend payout ratio is 25.1%.
Through this special dividend, shareholders will benefit from killing two birds with one stone: increased dividend income and tax benefits.
Samsung Electronics is also making efforts to increase shareholder value not only through dividends, but also through share buybacks and cancellations. In November 2024, considering market concerns that the company’s value was undervalued, it was decided to purchase 10 trillion won worth of shares. The first cancellation of 3 trillion won worth of treasury stocks was completed in February 2025. Samsung Electronics plans to purchase a total of 10 trillion won worth of treasury stocks from November 2024 to September 2025 and burn 8.4 trillion won worth (of which 3 trillion won is incinerated), and the rest is being used to compensate executives and employees.
Samsung Electronics announced its ‘Shareholder Return Policy from 2024 to 2026’ on January 31, 2024. At the time, Samsung Electronics decided, “We will maintain the same shareholder return policy as before for the next three years amid continued internal and external uncertainties such as poor performance due to the worsening industry situation in 2024.”
The policy announced at the time included a plan to return 50% of free cash flow generated over three years from 2024 to 2026 and pay annual dividends of 9.8 trillion won. In addition, we decided to maintain a policy of calculating remaining resources every year and reviewing additional returns in addition to regular dividends if sufficient remaining resources arise. Even before the end of the next shareholder return policy period, it is possible to flexibly announce and implement a new shareholder return policy considering M&A promotion and cash volume.
Meanwhile, Samsung Electronics has implemented a three-year shareholder return policy to return 50% of free cash flow for three years from 2021 to 2023 and pay out 9.8 trillion won in dividends every year. Total free cash flow over three years is 18.8 trillion won, and 50% of free cash flow, which is a policy source of shareholder return, is about 9.4 trillion won, but Samsung Electronics paid a total of 29.4 trillion won in dividends over three years. This corresponds to 157% of total free cash flow and 313% of shareholder return resources.
