Samsung Electronics likely to announce $72.4 bil. shareholder returns: sources

Samsung Electronics is expected to return up to $72.4 billion to shareholders, according to industry sources. This announcement comes on the heels of a similar move by rival SK hynix, which also reported record earnings fueled by the artificial intelligence (AI) boom. The world's largest memory chip maker is anticipated to disclose its largest-ever shareholder-return initiative at a board meeting, potentially as early as later Friday or next week.

This would conclude Samsung Electronics' three-year shareholder-return policy for 2024-26, which aims to distribute 50% of its free cash flow to investors. Observers believe the company could return more than $72.4 billion through a special dividend, based on an estimated annual operating profit of $390 billion. Additionally, Samsung Electronics may utilize the funds for share buybacks and to provide special performance bonuses to employees.

The company's second-quarter net profit surged nearly 1,300% to 90 trillion won, driven by robust demand for semiconductors associated with AI technology.