Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

Samsung Electronics Yearend Special Dividend Possibility Checkup

Samsung Founding Family's Stake Sale: Impact on SamE Share Buyback Vs. Special Dividend

Samsung 1P Discount Should Go South, Probably as Far South as Historic Low

Samsung Family Stake Change Filings: Ramifications for SamE 1P Discount

Samsung 1P Close To -2σ: Trade This Divergence for Three Reasons

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

Samsung Electronics Pref Shares / Event-Driven

Samsung Electronics Pref Shares (005935 KS)

<p>First, let's take a look at Samsung Electronics' FY2021-2023 shareholder return policy.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/227/569/original/Screen+Shot+2021-09-02+at+3.26.09+PM.png?1630610827" class="editor-image img-responsive" data-smartkarma-image-id="227569"></figure></section><div><ul><li>Samsung will continue to return 50% of the free cash flow (FCF) generated in FY21~23.</li></ul></div><div><ul>
<li>The regular dividend will increase to an annual total of ₩9.8T for FY21~23 (it was ₩9.6T for FY18~20).</li>
<li>So, this year's (and the next two years) guaranteed minimum dividend is ₩1,443 for ord and ₩1,444 for 1P. The quarterly dividend should then be ₩361.</li>
<li><strong>Samsung also reiterated that it would continue to return any remaining from the 50% of the FCF after regular dividend payouts.</strong></li>
<li><strong>What's different now is that Samsung will share the annual FCF at the end of each year.</strong></li>
<li><strong>In addition, Samsung will actively consider executing a portion of it at the close of each year’s results. Yes, we may have special dividends at each yearend in FY21~23.</strong></li>
</ul></div>

First, let's take a look at Samsung Electronics' FY2021-2023 shareholder return policy.Samsung will continue to return 50% of the free cash flow (FCF) generated in FY21~23.
The regular dividend will increase to an annual total of ₩9.8T for FY21~23 (it was ₩9.6T for FY18~20).
So, this year's (and the next two years) guaranteed minimum dividend is ₩1,443 for ord and ₩1,444 for 1P. The quarterly dividend should then be ₩361.
Samsung also reiterated that it would continue to return any remaining from the 50% of the FCF after regular dividend payouts.
What's different now is that Samsung will share the annual FCF at the end of each year.
In addition, Samsung will actively consider executing a portion of it at the close of each year’s results. Yes, we may have special dividends at each yearend in FY21~23.


Samsung Electronics Special Dividend Situation Checkup for This Year