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Samsung announces up to $80bn shareholder payout through 2028

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Samsung announces up to $80bn shareholder payout through 2028

This digest was compiled by AI from multiple sources — links to the originals are below.

Samsung Electronics announced plans to return up to $80 billion to shareholders through dividends and buybacks by 2028. The program includes an $11 billion buyback by November 21 and a $22 billion cash dividend in the third quarter. The announcement follows surging AI-driven chip demand that lifted Samsung's first-half operating profit more than 12-fold year-on-year.

Key Facts

  • Samsung will buy back $11 billion of its own shares by November 21.
  • Samsung will pay a $22 billion cash dividend in the third quarter.
  • Samsung's first-half operating profit rose more than 12-fold compared with the same period last year.
  • SK Hynix plans to buy back $29.3 billion of its shares.
  • Samsung shares are down 22% from their June peak, while SK Hynix shares are down 41%.

Shareholder Return Program

Samsung Electronics announced it will return up to $80 billion to shareholders by 2028, depending on financial results, investment levels, and cash flow. The company will buy back $11 billion of its own shares by November 21 and pay a $22 billion cash dividend in the third quarter. Decisions on other payments will be made in January next year, with Samsung considering additional cash dividends, further buybacks, and share cancellations. Samsung said the record payout level aims to deliver the tangible results of company growth to investors.

AI Chip Demand

Surging demand for chips used in artificial intelligence infrastructure has strengthened the financial position of both Samsung and SK Hynix. Samsung's operating profit in the first half rose more than 12-fold from the same period last year, while SK Hynix's increased fivefold. Analysts project the two companies' combined annual operating profit could exceed $400 billion. Despite the profit surge, Samsung shares have fallen 22% from their June peak and SK Hynix shares are down 41%.

Market Reaction

Samsung CFO Park Soon-cheol said the company seeks an optimal balance between maximizing shareholder value and reinvesting for future growth. Life Asset Management board chairman Chaiwon Lee said the payout is significant but not particularly large relative to the company's rapid profit growth. Lee added that the move shows Samsung has sufficient financial resources to improve shareholder returns and reduce investor concerns.

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