BofA Expects Samsung, SK Hynix to Return 50% of Free Cash Flow to Shareholders

Bank of America expects Samsung Electronics and SK Hynix to unveil shareholder return programs that direct 50% of free cash flow back to shareholders, according to analyst Jukan, as reported by BlockBeats on August 9. For Samsung, the bank predicts a special dividend exceeding 30 trillion won in Q3 or Q4, a share buyback of more than 40 trillion won in the first half of 2027, and a 30 trillion won year-end dividend in April 2027. Samsung would also buy back over 30 trillion won in shares for employee compensation. For SK Hynix, Bank of America likewise projects that 50% of free cash flow will go to shareholders, but with buybacks weighted more heavily than cash dividends. The expected buyback amount is over 40 trillion won, while cash dividends would exceed 20 trillion won. At Samsung, the projected distributions include a special dividend, a buyback program, a year-end dividend and an additional employee-linked buyback. For SK Hynix, buybacks would account for the larger portion of the shareholder return package.