Samsung Electronics (005930) closed higher even on the ex-dividend date for a third-quarter special payout worth nearly 30 trillion won ($21 billion), setting itself apart from SK hynix (000660). The chipmaker held its ground despite a run of external headwinds, including a spike in U.S. Treasury yields, concerns about a wider conflict in the Middle East and news that OpenAI had temporarily halted research on its next-generation model. Analysts said the stock showed resilience as valuation appeal following a drop steeper than the dividend yield on the 28th combined with expectations of further shareholder returns through the end of the year.
Samsung Electronics recovered from an early slide to as low as 266,000 won and closed at 272,500 won, up 0.93% from the previous session, according to the Korea Exchange on the 29th. The gain broke a streak in which the stock had weakened on the ex-dividend date for six consecutive quarters. The shares had tumbled 5.43% the previous day. SK hynix, weighed down by concerns over a dual listing of Solidigm, moved in the opposite direction, closing 0.17% lower at 1.765 million won.
The KOSPI ended at 6,870.81, down 18.93 points, or 0.27%, from the previous session. Foreign investors sold a net 2.903 trillion won on the main board, while individuals and institutions bought a net 1.1432 trillion won and 121 billion won, respectively. Foreigners unloaded 602.2 billion won worth of Samsung Electronics shares and 1.5564 trillion won worth of SK hynix shares.
The market was pressured by risk aversion after the yield on the 10-year U.S. Treasury note topped 5.2%, the highest level since 2007. News that OpenAI had paused training of its next-generation artificial intelligence model over safety concerns also stoked worries about slowing demand for AI chips.
Even so, analysts attribute Samsung Electronics' rebound to expectations of additional large-scale shareholder returns that would offset the ex-dividend impact. The third-quarter dividend, which closed the previous day, is estimated at a total of 4,568 won per share — 370 won in regular dividends and 4,198 won in special dividends — for a dividend yield of about 1.7%. Securities analysts expect the additional shareholder return to be announced in late October to be even larger than this quarter's 30 trillion won special dividend. Eugene Investment & Securities estimated that Samsung Electronics has 90 trillion to 110 trillion won available for annual shareholder returns, with 55 trillion to 75 trillion won still remaining for the year, which could lift the annual dividend per share to between 13,046 won and 16,115 won. Samsung Electronics said it would disclose the specific dividend amount after its earnings release in late October.
Lee Jae-won, an analyst at Yuanta Securities Korea, said Samsung Electronics has a continuous series of catalysts, from the short-term supply-and-demand event of the special dividend to its earnings release in early October and additional shareholder return policies after that. The analyst added that foreign buying could return if interest rates and oil prices stabilize.
