SEOUL KOREA - Following Samsung Electronics’ decision to buy back its shares as part of its shareholder-friendly policy, interest is growing about if it will expand dividend payments. Stock analysts said that the buyback decision wouldcontribute to the stabilization of stock prices but the expansion of dividend payments is needed to turn the price upward.
At 10:18 am of November 27, the share price of Samsung Electronics jumped by 7.24 percent or 87,000 won, to 1,288,000 won, backed by the company’s announcement that it will buy back 2.19 trillion won shares until February 26, 2015.This will be the first time for Samsung Electronics to buy back its shares since 2007.
The share prices of other Samsung affiliates, including Samsung C&T and Samsung SDI, showed strength, amid analysts’expectations that the buyback signals a change in Samsung’s governance structure.
Samsung Electronics’ dividend payout ratio stood at 7.23 percent as of the end of last year, far lower than its rival Apple’s 28.5 percent.
