The remaining amount of shareholders’ return resources in 2016, amounting to 8.5 trillion won, and 0.8 trillion won from 2015 will be used for the buyback scheme, which will be executed in up to four phases of repurchase and cancellation.
The first phase of the buyback scheme will start from Jan. 25 and last for around three months during which the tech giant will repurchase and cancel 1.02 million common shares and 255,000 preferred shares, the company said.
The board of director approved a year-end dividend of 25,500 won per share for common shares and 27,550 won for preferred shares. Including the interim dividend, the annual dividend per share has increased about 36 percent.
The total shareholder returns for 2016 will amount to 12.5 trillion won, which is 50 percent of the annual free cash flow of 24.9 trillion won. Of this amount, about 4 trillion won will be paid as dividend.
In November last year, Samsung vowed to enhance its shareholder return policy to give 50 percent of its cash reserves to stakeholders.
By Kim Young-won (firstname.lastname@example.org)