Samsung Electronics announced a shareholder return package totaling between $65B and $80B for 2026, calling it the largest ever by a Korean company.
The plan earmarks roughly $22B for third-quarter cash dividends, with the balance expected to be returned through a combination of additional dividends, buybacks, and share cancellations.
Samsung also confirmed it repurchased roughly $11B in stock for employee compensation.
AI cash is driving the pressure
Samsung and rival SK Hynix supply memory chips to Nvidia and sit at the center of the AI infrastructure buildout.
Record profits followed. Samsung reported a more than 250-fold jump in chip profit in the second quarter, to roughly $64B. Its shares have climbed 300% over the last 12 months.
Together, Samsung and SK Hynix are projected to hold a combined $263B in net cash by year-end. That exceeds the combined cash of the other six "Magnificent Seven" US tech companies.
SK Hynix moved first this week, announcing a $29B buyback-and-cancel program and pledging to allocate more than 50% of free cash flow to shareholders between 2025 and 2027. Samsung's announcement followed days later under similar investor pressure.
Samsung's program commits 50% of free cash flow accumulated over a three-year window to shareholders. The previous high for Samsung shareholder returns was roughly $15B in 2020. Friday's package is more than five times that figure.
For context on scale, Apple approved $110B in repurchases in 2024 in what was called the biggest US stock buyback ever.
The market reaction was mixed
Samsung and SK Hynix shares both climbed on Friday following the announcement. But Samsung's preferred shares had already surged more than 8% ahead of the announcement, reflecting high expectations.
After the filing, shares erased gains and fell as much as 2.6% in post-market trading. Some investors had expected returns as high as $108B.
"The key question for investors will now be how the remaining capital is returned, rather than just the headline amount."
Jung In Yun, Fibonacci Asset Management Global
Analysts at CLSA said the program should help set a floor for Samsung's share price, though they noted a buyback would have been more directly supportive than dividends by creating additional market demand for shares.
Samsung’s board will meet in late October to confirm the third-quarter dividend, while the broader return plan won’t be locked in until late January 2027. Until then, the headline figure remains a target rather than a done deal.