Samsung plans $72B dividend payout

Samsung announced its plans to distribute massive returns to its shareholders amounting to over $72 billion. This move comes in response to increased profits driven by the rising demand for AI chips and computer networks. The package will primarily focus on cash dividends and share buybacks to enhance shareholder value, in line with its policy from 2024 to 2026 to distribute 50% of free cash flow to shareholders. This step follows the company's record-breaking profits in the second quarter, fueled by increased sales of memory chips linked to artificial intelligence. It also coincides with its competitor SK Hynix announcing a similar package, including share buybacks and cancellations worth $28.6 billion. Projections indicate that the combined cash reserves of Samsung and SK Hynix will exceed $263 billion by the end of the year—more than double Nvidia's expected cash holdings of $102 billion, and surpassing the total liquidity of major U.S. tech companies. These developments have led to a 3.5% increase in Samsung's stock and a 4.4% rise in SK Hynix's stock, outperforming the overall market.

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