Samsung shares fall 5.43% as dividend eligibility deadline passes and buyback nears completion

  • Samsung Electronics shares fell 5.43% as dividend eligibility buying ended Monday.
  • Eugene Investment & Securities estimates third-quarter DPS at 4,604 won.
  • Samsung had repurchased 45.8 million of 53.3 million planned shares by Wednesday.

Samsung Electronics shares fell 5.43% to 270,000 won ($198) on Monday, the final day investors could buy shares and qualify for the company's record quarterly dividend. The record date is Wednesday, and Korean equities settle two business days after purchase, including eligible after-hours trades. Shareholders who sell from Tuesday retain their right to the November payout. Samsung has pledged about 30 trillion won in third-quarter cash dividends, including its regular dividend, with Eugene Investment & Securities estimating a payment of 4,604 won per share. The final amount is due to be set at an October board meeting. Samsung has estimated 90 trillion won to 110 trillion won in shareholder returns for the year, leaving room for an additional 8,441 won to 11,511 won per share at year-end and total annual dividends of 13,045 won to 16,115 won per share. Analysts said a dividend yield of about 6% could support the stock between 230,000 won and 240,000 won, but the approaching completion of Samsung's share buyback is a key uncertainty. The company had repurchased 45.8 million of the 53.3 million shares covered by its filing, or 85.95%, as of the previous Wednesday, and could finish in about four trading days at its recent pace of roughly 2 million shares a day, well before the scheduled Nov. 21 end date. Higher U.S. Treasury yields also weighed on Korean chip stocks, with SK hynix falling 5.05% to 1,768,000 won.

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