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Samsung, the world’s leading dividend paying company

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Samsung Electronics now ranks as the world’s top dividend-paying company. The U.S. business media outlet CNBC reported on the 23rd (local time) that Samsung Electronics has overtaken Nestle as the number one dividend company in the world in the second quarter. The next largest company was Australian miner Rio Tinto, followed by RBC and the largest bank in Russia, Sverbank. According to media reports, Samsung Electronics paid out a total of $12.2 billion in the second quarter.

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Samsung Electronics’ semiconductor business posted an operating profit of nearly 7 trillion won in the second quarter of this year, the best performance since the 2018 supercycle. In the last three years, sales in this sector have also exceeded 22 trillion won. Due to the revival of the semiconductor industry, Samsung Electronics’ sales in the first half of this year recorded an all-time record, allowing it to increase its dividend.

Last year, Samsung Electronics paid a record dividend and is expected to do the same this year. Samsung Electronics’ dividend totaled 20,338.1 billion won last year, more than double the previous year’s 9,619.2 billion won. In addition to last year’s special dividends, the company paid 2,944 won per share (common stock). At the end of last year, this represented 3.69% of the share price. As of this year, the quarterly dividend has also increased from 354 won to 361 won per share.

The 18th of this month, individuals purchased a net of 394.2 million shares of Samsung Electronics in anticipation of an increase in dividends. This represents 6.70 % of Samsung Electronics share capital (5,969.78 million shares). Compared to last year, this figure represents a higher proportion of shares held by individual investors. According to the Korea Securities Depository, an individual’s ownership in Samsung Electronics was 6.48 percent at the end of last year.

Over the past year, 84% of companies worldwide have increased or maintained dividends. According to the report, “the effect of companies taking back frozen dividends and increasing special dividends based on strong earnings was a significant factor.”

Dividend increases differed by country. In the U.K. and Europe, dividends increased by 60.9% and 66.4%, respectively, but declined in emerging markets. Dividend yields in North America reached record levels in the second quarter. Dividends in the Asia Pacific region, excluding Japan, rose 45% compared to the same period last year due to the special dividend from Samsung Electronics.

For MetaNews.

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Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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