Samsung Electronics shares climbed on Friday after the company outlined plans for 90 trillion to 110 trillion won in capital returns in 2026 while maintaining its policy of returning 50% of free cash flow generated between 2024 and 2026.
The announcement supported investor sentiment, although Morgan Stanley said the size of the package came in slightly below recent market expectations.
Morgan Stanley Says Samsung Returns Fell Short of Some Estimates
Morgan Stanley described Samsung’s announcement as a meaningful increase in absolute shareholder returns.
However, the investment bank noted that the plan was largely anticipated by the market and remained slightly below recent buy-side estimates of more than 110 trillion won.
Investors had already been expecting Samsung to unveil a major shareholder return package following reports that the total amount could surpass 100 trillion won.
Samsung Expected to Focus on Cash Dividends
Earlier media reports suggested that Samsung could distribute around half of its free cash flow to shareholders.
According to MoneyToday, the company’s shareholder return strategy is expected to focus primarily on cash dividends rather than share buybacks.
Reports had also raised the possibility of a special dividend as part of the wider capital return package.
Samsung has not yet officially commented on all of the details reported by the media.
Samsung Shares Extend Strong Rally
Samsung Electronics shares listed in Seoul rose 3.9% to 281,500 won on Friday.
The increase followed an even stronger session the previous day, when the stock gained nearly 10%.
The recent rally reflects growing investor optimism around Samsung’s shareholder return policy and improving earnings outlook.
SK Hynix Shares Also Jump
Samsung was not the only major South Korean semiconductor company attracting investor attention.
Shares of rival SK Hynix rose 3.6% on Friday after surging 12.7% in the previous session.
The company announced a 40 trillion won share buyback and cancellation program, providing another boost to sentiment across South Korea’s semiconductor sector.
AI Memory Demand Supports Samsung Earnings
Samsung recently reported a record second-quarter operating profit as strong demand for memory chips used in artificial intelligence infrastructure supported earnings.
Growing investment in AI data centers has increased demand for advanced memory products, strengthening the outlook for major chipmakers such as Samsung and SK Hynix.
This stronger earnings environment could give Samsung greater flexibility when deciding how much capital to return to shareholders.
Samsung Maintains 50% Free Cash Flow Policy
Samsung’s existing shareholder return framework calls for the company to distribute 50% of free cash flow generated between 2024 and 2026.
Regular dividends remain a central part of the policy, while additional shareholder returns may be introduced when the company has sufficient surplus cash.
The newly announced capital return range therefore represents a significant commitment to shareholders, even if it came in slightly below the most optimistic market expectations.
