Samsung Falls 8.7% After Record $79 Billion Payout Disappoints
Samsung Electronics' stock dropped 8.7% on Monday after its record shareholder return plan disappointed investors.
The stock traded near 257,000 won, down 24,500 won from Friday's close. It has now surrendered the gains that followed the board announcement.
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Why a Record Payout Still Disappointed
Samsung's board approved 2026 shareholder returns of 90 trillion won to 110 trillion won, or roughly $65 billion to $79 billion. This is about five times the previous high of 20.3 trillion won set in 2020.
Roughly 30 trillion won will be paid as third-quarter cash dividends. Samsung reaffirmed its pledge to return half of its free cash flow.
Analysts had modeled a bigger number. The plan also offered little detail on treasury share cancellations.
"Unlike SK Hynix, Samsung Electronics did not mention the possibility of raising its existing shareholder return policy, nor did it announce a plan to cancel treasury shares that could more directly contribute to the stock price increase, which is disappointing," Eugene Securities analyst Sohn In-joon said.
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