[Edaily Reporter Shin Ha-yeon ] SamsungElectronics(005930)As the last day to purchase shares to qualify for the company’s largest-ever cash dividend approaches, investor interest is growing. The dividend per share, as estimated by the securities industry, is 4,604 won; an investor holding 1,000 shares of SamsungElectronics would receive approximately 4.6 million won before taxes.

According to the financial investment industry on the 21st, the record date for SamsungElectronics’ third-quarter dividend this year is the 30th. Since settlement for domestic stocks occurs two business days after the purchase date, investors wishing to receive the dividend must purchase shares by the 28th. The 29th is the ex-dividend date, when the right to receive the dividend expires.

Trades executed on the Korea Exchange (KRX) after-hours market are also treated as transactions for that trading day. Accordingly, even if the regular trading session ends at 3:30 p.m., investors who complete a purchase on the KRX after-hours market by 8:00 p.m. on the 28th will be eligible for the dividend. The order must be fully executed—not merely submitted—to qualify.

SamsungElectronics held a board meeting last month and announced that it would implement shareholder returns totaling approximately 90 trillion to 110 trillion won this year. This dividend marks the first phase of the shareholder return plan approved by SamsungElectronics’ board on August 21. SamsungElectronics has decided to distribute approximately 30 trillion won in cash dividends, including its regular third-quarter dividend. Considering that the previous quarterly dividend amounted to approximately 2.45 trillion won, the remaining approximately 27.55 trillion won is effectively a special dividend. The specific dividend per share and payment schedule are expected to be finalized at a board meeting in late October.

EUGENE INVESTMENT & SECURITIES calculated that SamsungElectronics’ announced third-quarter cash dividend of 30 trillion won equates to 4,604 won per share. This calculation assumes that the same dividend per share will be paid to both common and preferred shares, and excludes from the dividend pool the company’s existing treasury shares and those scheduled for acquisition as disclosed last month.

Accordingly, it is estimated that holders of 100 SamsungElectronics shares will receive 460,400 won, those with 1,000 shares will receive 4,604,000 won, and those with 10,000 shares will receive 46,040,000 won, all before taxes. After applying the standard 15.4% tax on dividend income, the estimated amount received by a holder of 1,000 shares is approximately 3,895,000 won. It is also important to note that if annual financial income exceeds 20 million won, it may be subject to comprehensive taxation on financial income.

However, the 4,604 won per share is a securities firm’s estimate and is not a confirmed dividend amount. SamsungElectronics plans to determine the specific size of the third-quarter dividend and the dividend per share at a board meeting scheduled for late October. The actual amount may vary depending on the final number of shares eligible for the dividend and the board’s decision.

Caution is also advised for short-term purchases made solely for the purpose of receiving dividends. On the ex-dividend date (the 29th), even if you purchase new shares, you will not be eligible to receive this dividend, so theoretically, the stock price may drop by the amount of the dividend. Based on SamsungElectronics’ closing price of 261,000 won on the 18th, the dividend of 4,604 won per share represents approximately 1.76%. However, since the actual stock price reflects factors such as the semiconductor market conditions, supply and demand, and trends in domestic and international stock markets, it does not move exactly in tandem with the dividend amount.

Even if you buy shares on the 28th to receive the dividend and sell them immediately on the 29th, you will retain your dividend rights. However, if the decline in the stock price following the ex-dividend date exceeds the after-tax dividend amount, your overall investment return could result in a loss. This is why it is important to consider not only the expected dividend but also post-ex-dividend price volatility and taxes.

EUGENE INVESTMENT & SECURITIES estimated that the remaining funds for year-end shareholder returns following the third-quarter dividend would range from 55 trillion to 75 trillion won. Assuming this entire amount is distributed as dividends, the combined amount per share for the third-quarter and year-end shareholder returns was calculated to be between 13,046 and 16,115 won. However, actual year-end shareholder returns may be implemented through a combination of cash dividends and share buybacks and cancellations.

Kang Song-cheol, an analyst at EUGENE INVESTMENT & SECURITIES, said, “The fact that SamsungElectronics is expected to yield a dividend yield of about 6% (5–7%) by year-end could serve as a downside support factor in the 230,000–240,000 won price range.”

Lee Jeong-bin, an analyst at Shinhan Investment Securities, noted, “The fact that companies with high levels of shareholder returns and share buybacks have shown relatively low downside sensitivity during market corrections serves as a factor supporting the stock price floor,” adding, “Ultimately, while shareholder returns provide a buffer against downside risk, the magnitude of future alpha will depend on the sustainability of the elevated profit levels.”