Samsung Electronics expects to announce a new shareholder return policy featuring a potential tenfold increase in annual payouts. KB Securities projects the program will range from 100 trillion to 200 trillion won ($71 billion to $142 billion) per year. This marks a significant rise from the current annual return of 9.8 trillion won.
The new policy targets returning 50% of free cash flow to shareholders between 2024 and 2026. Strong earnings from the AI memory boom drive this projected capital allocation.
Analysts estimate even the minimum payout would imply a dividend yield exceeding 7% at current share prices. KB Securities views the upcoming announcement as a primary catalyst for a stock re-rating.