Samsung Electronics’ Shareholder Returns Surpass Tech Giants Amid Industry Downturn

April 02, 2024 – Samsung Electronics’ shareholder returns have been under the spotlight recently, with investors expressing dissatisfaction with the current yields. They are urging the company to increase its dividend payouts and take other measures to boost its stock price.

Surprisingly, despite facing a significant downturn in the memory chip industry, which has been a key profit driver for Samsung, the company’s shareholder returns have still surpassed those of tech giants like Microsoft and Meta.

According to financial reports analyzed over the past year, Samsung Electronics achieved a remarkable shareholder return rate of 77.6%, considerably higher than Microsoft’s 57.5% and Meta’s 59.5%.

The shareholder return rate is a metric that gauges the profitability of a company’s equity for its shareholders, indicating how much net income the shareholders’ equity can generate.

In recent years, Samsung Electronics has made a concerted effort to enhance shareholder returns, elevating them from 20.4% in 2022 to one of the highest levels in the company’s history.

At a recent shareholder meeting, Samsung Electronics Vice Chairman Han Jong-hee reiterated the company’s commitment. He vowed to continue returning billions of dollars to shareholders in dividends by 2026 and allocate 50% of its remaining free cash flow to dividend payments. “Even if the capital expenditure requirements of our semiconductor division increase significantly, we will continue to prioritize shareholder-oriented management in this challenging business environment,” he stated.

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