Shares of Samsung Electronics fell as much as 8% in early trading on Monday after the company’s dividend plans disappointed investors.
The South Korean chipmaker had announced plans to return between 90 trillion and 110 trillion won ($79.4 billion) to shareholders this year, including dividends of 30 trillion won in the third quarter. The proposed payouts exceed the previous record of 20.3 trillion won set in 2020, according to the company’s statement on Friday.
Analysts, however, described the figures as below expectations. Sohn In-joon of Eugene Securities noted the absence of share buybacks, a strategy adopted by rival SK Hynix, which could have bolstered Samsung’s stock price. SK Hynix shares rose 0.4% while South Korea’s benchmark Kospi index declined 1.5%.
