Samsung Electronics shares fell 8% in early trading on Aug. 24 after investors reacted negatively to the company’s newly announced shareholder return plan. The company had unveiled a record $79 billion payout package, but the market had been looking for a larger transfer of cash gains tied to the AI boom, along with clearer details on stock buybacks. Samsung said on Friday that this year’s shareholder return program would total 90 trillion to 110 trillion won, including a 30 trillion won cash dividend to be paid in the third quarter. Eugene Securities analyst Sohn In-joon said the company did not mention the possibility of raising its current shareholder return policy and did not announce any plan to retire treasury shares. Morgan Stanley said investors should now watch how Samsung allocates the remaining 60 trillion to 80 trillion won in January next year and how it sets the next phase of its capital return framework, which will take effect next year.
Samsung Electronics shares fell 8% in early trading on Aug. 24 after the company announced a record $79 billion shareholder return plan that failed to meet market expectations.
Investors had expected Samsung to return more of the cash gains generated by the AI boom and to provide clearer guidance on its stock buyback plan. That gap drove disappointment in the market response.
Samsung said on Friday that this year’s shareholder return program would amount to 90 trillion to 110 trillion won. The package includes a 30 trillion won cash dividend scheduled for the third quarter.
Eugene Securities analyst Sohn In-joon said, 「Samsung Electronics neither mentioned the possibility of raising its current shareholder return policy nor announced a plan to retire treasury shares, which is disappointing.」
Morgan Stanley said investors should focus on two issues next: how Samsung will allocate the remaining 60 trillion to 80 trillion won in January next year, and the company’s next-stage capital return framework, which will take effect next year.
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