Samsung has announced that it will allocate 50 percent of its free cash flow for 2016 and 2017 to its shareholders. This significant move underscores Samsung’s commitment to enhancing shareholder value and ensuring that its investors reap substantial benefits from the company’s financial success.
It also announced that it will increase the total dividends in 2016 by 30 percent when compared to 2015. This increase in dividends is a clear indication of Samsung’s robust financial health and its dedication to sharing its profits with its shareholders.
Enhanced Shareholder Returns Policy
Under the roadmap, which builds on the shareholder return program announced in October 2015, Samsung Electronics will further enhance its shareholder returns policy, capital management and the operation of the Board of Directors while also ensuring that the Company can continue to direct the required investment resources to compelling opportunities and to nurturing future growth drivers to the benefit of all of its stakeholders.
“We are committed to enhancing sustainable long-term value for our shareholders and to remaining good stewards of capital,” said Dr. Oh-Hyun Kwon, Vice Chairman and CEO of Samsung Electronics. “Today’s announcement extends the actions we initiated last year and represents the next phase in the evolution of our shareholder policy and governance.”
Samsung’s roadmap is designed to build on the shareholder return program announced in October 2015. This program aims to enhance the company’s shareholder returns policy, improve capital management, and optimize the operation of the Board of Directors. By doing so, Samsung ensures that it can continue to invest in compelling opportunities and nurture future growth drivers, benefiting all stakeholders.
Commitment to Sustainable Long-Term Value
Dr. Oh-Hyun Kwon, Vice Chairman and CEO of Samsung Electronics, emphasized the company’s commitment to enhancing sustainable long-term value for its shareholders. He stated, “We are committed to enhancing sustainable long-term value for our shareholders and to remaining good stewards of capital. Today’s announcement extends the actions we initiated last year and represents the next phase in the evolution of our shareholder policy and governance.”
This commitment to sustainable long-term value is evident in Samsung’s strategic decisions. By allocating a significant portion of its free cash flow to shareholders and increasing dividends, Samsung is ensuring that its investors receive substantial returns on their investments. This approach not only rewards current shareholders but also makes Samsung an attractive option for potential investors.
Moreover, Samsung’s focus on capital management and the operation of the Board of Directors ensures that the company remains agile and responsive to market changes. This agility is crucial in the fast-paced technology sector, where innovation and timely investments can make a significant difference.
Future Growth and Investment
Samsung’s roadmap also highlights the company’s dedication to directing investment resources to compelling opportunities and nurturing future growth drivers. This forward-thinking approach ensures that Samsung remains at the forefront of technological innovation and continues to deliver cutting-edge products and services to its customers.
For instance, Samsung’s investments in research and development have led to groundbreaking advancements in various fields, including semiconductor technology, consumer electronics, and telecommunications. These investments not only drive Samsung’s growth but also contribute to the broader technological landscape, benefiting consumers and industries worldwide.
Furthermore, Samsung’s commitment to nurturing future growth drivers extends beyond its core business areas. The company is also exploring new opportunities in emerging fields such as artificial intelligence, the Internet of Things (IoT), and renewable energy. By diversifying its investment portfolio, Samsung is positioning itself for long-term success and resilience in an ever-evolving market.
You can find out more details about Samsung’s plans to increase the amount of money they pay to shareholders at the link below.
Source Samsung
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