(LEAD) Samsung to pay record dividends this year, more through 2023
(ATTN: ADDS more info in paras 2-4, 9)
By Joo Kyung-don
SEOUL, Jan. 28 (Yonhap) -- Samsung Electronics Co. said Thursday it will pay record dividends to shareholders later this year and more through 2023 to improve its shareholder value, a move that is also seen to smooth out leadership succession for Samsung Group heirs.
Samsung will pay a total of a record 13.12 trillion won (US$11.8 billion) in dividends to shareholders for the 2020 fiscal year in April, the tech giant said.
"The board approved a one-time special cash dividend of 10.7 trillion won," the company said.
"In April, shareholders of record as of end of 2020 will receive 1,932 won per common share and 1,933 won per preferred share, which includes the year-end regular dividend of 354 won per common share and 355 won per preferred share, after approval in March at the annual general meeting of shareholders."

This photo, taken on Jan. 26, 2021, shows the corporate logo of Samsung Electronics Co. at its office building in Seoul. (Yonhap)
Samsung's special dividend of 1,578 won per common share was far higher than the market estimate of around 1,000 won.
The tech behemoth also announced a new three-year shareholder return initiative that centers on allocating 9.8 trillion won as dividends annually, half of its estimated free cash flow (FCF) for the 2021-2023 period.
FCF refers to the cash left over after a company pays its taxes, operating expenses and capital expenditures.
Its new dividend payout plan is more shareholder-friendly than the previous one, in which it allocated 9.6 trillion won annually for the 2018-2020 period.
"To enhance predictability, Samsung will share the annual FCF at the end of each year. If a significant amount of expected return is generated, Samsung will actively consider paying a portion of it at the close of each year's results," the company said.
Analysts have been widely predicting that Samsung's new shareholder return program will aim to deliver more dividends to its shareholders, considering that Samsung Group heirs, including Samsung Electronics Vice Chairman Lee Jae-yong, need to pay massive inheritance taxes following the death of group chief Lee Kun-hee in October last year.
Samsung heirs are estimated to pay around 11 trillion won in inheritance taxes for the late chief's stock assets worth around 19 trillion won.
kdon@yna.co.kr
(END)
-
S. Korea to allow online permit-free entry for tourists from 22 nations to spur spending
-
Opposition leader calls on Yoon to reject imports of products from Japan's Fukushima
-
DP leader says Yoon should have stormed out of summit with Japan if Dokdo issue raised
-
One-third of senior public officials have over 2 bln won in personal wealth: data
-
Actor Yoo Ah-in appears for questioning over alleged drug use
-
S. Korea to allow online permit-free entry for tourists from 22 nations to spur spending
-
Grandson of ex-President Chun apprehended at Incheon Int'l Airport over drug use
-
One-third of senior public officials have over 2 bln won in personal wealth: data
-
Actor Yoo Ah-in appears for questioning over alleged drug use
-
Change seen among Japanese right wing favoring restoration of ties with S. Korea: envoy
-
N.K. leader's sister accuses Zelenskyy of gambling with Ukraine's destiny
-
Top U.S. general cancels plan to visit S. Korea due to time restraints: his office
-
Actors in Netflix series 'The Glory' dating: agencies
-
BLACKPINK's Jisoo tops iTunes' global chart with 'Flower'
-
(2nd LD) S. Korea's exports down for 6th month in March on falling chip demand