Samsung Electronics' Record-Breaking 30 Trillion Won Dividend: Is Today the Last Chance?

[Financial News] As shares weakened on the final day for buying Samsung Electronics stock eligible for its approximately 30 trillion won third-quarter cash dividend, retail investors are busy calculating their options.

Samsung Electronics' record date for its third-quarter dividend is the 30th. Because domestic stock trades take two business days to settle after execution, investors must buy Samsung Electronics or Samsung Electronics Preferred Shares by the 28th to receive the dividend. The 29th is the ex-dividend date, when the right to receive the dividend expires.
Investors who complete their purchases by the 28th can still receive the third-quarter dividend even if they sell the shares on the 29th. However, as of 1:55 p.m. on the 28th, Samsung Electronics was trading at 273,000 won, down 4.38% from the previous session, while Samsung Electronics Preferred Shares were trading at 207,500 won, down 5.68%.
Last month, Samsung Electronics said it expected this year's funds for shareholder returns to total approximately 90 trillion to 110 trillion won. It also announced plans to pay approximately 30 trillion won in cash dividends in the third quarter, including the regular quarterly dividend. Because the amount is significantly larger than its previous regular quarterly dividend, the market views it as effectively a special dividend.
Accordingly, securities analysts expect the third-quarter dividend per share (DPS) to come to around 4,500 won. Yuanta Securities Korea estimated the dividend at approximately 4,500 won per share, while Eugene Investment & Securities projected 4,604 won. This means an investor holding 100 Samsung Electronics shares could receive 450,000 won before tax, while one holding 1,000 shares could receive 4.5 million won.

Analysts have also warned that investors should be cautious about short-term purchases aimed solely at receiving the dividend. On the 29th, the ex-dividend date, the share price could theoretically be adjusted downward by the amount of the dividend. However, the actual share price is also influenced by factors such as semiconductor industry conditions and supply and demand dynamics, so it will not necessarily decline by exactly the dividend amount.
Additional funds for shareholder returns will remain after the third-quarter dividend. Eugene Investment & Securities calculated that, after subtracting the first- and second-quarter cash dividends and the 30 trillion won third-quarter cash dividend from the 90 trillion to 110 trillion won in funds for shareholder returns projected by Samsung Electronics, the funds available for year-end shareholder returns would amount to 55 trillion to 75 trillion won.
Lee Jae-won, an analyst at Yuanta Securities Korea, said, "Samsung Electronics has a series of catalysts, including the short-term supply-and-demand event created by the special dividend, earnings in early October, and additional shareholder return policies to follow." He added, "If interest rates and oil prices stabilize further, there is ample potential for the company's leadership to strengthen as foreign investors also begin buying." The actual dividend per share is expected to be finalized by the board of directors later.
[email protected] Kim Hee-sun Reporter