Seoul [South Korea], August 11 (ANI): Samsung Electronics' surging AI memory profits and growing cash reserves have raised expectations of its first special dividend in six years, putting the spotlight on how much the tech giant could return to shareholders under its next shareholder-return programme, the Korea Herald reported.

Samsung last announced a major special dividend in 2020, distributing 10.7 trillion won in excess cash after completing its previous three-year shareholder-return programme. The company paid a special dividend of 1,578 won per common share, taking the total payout to 2,994 won per share, including the regular annual dividend of 1,416 won.

Park Soon-cheol, Samsung Electronics' chief financial officer, confirmed during the company's second-quarter earnings call on July 30 that the board and management were discussing the next program.

'We are discussing specific implementation measures, including a special dividend, and our next shareholder-return policy with the board and management,' Park said, adding, 'We will share the details soon with shareholders who have placed their trust in us and waited patiently,' the report said.

The discussions come as surging demand for AI memory chips boosts Samsung's earnings and cash generation. The company reported second-quarter revenue of 171.5 trillion won (USD 121.2 billion) and operating profit of 89.5 trillion won. Cash generated from operations exceeded 145 trillion won in the first half, while net cash stood at 167.59 trillion won at the end of June, nearly double the year-ago level, the report said.

Samsung distributes 50 per cent of free cash flow while maintaining regular annual dividends of around 9.8 trillion won under its 2024-26 shareholder-return policy.

'Samsung is seriously considering a special dividend,' Korea Herald reported, citing an industry source familiar with the matter. 'The discussion has moved to the scale of the additional payout and the balance between a special dividend and share buybacks,' it noted further.

While Samsung's stronger cash position has renewed expectations of another one-off payout, the company may also consider other avenues for returning capital, including share buybacks and cancellations, as reported by Korea Herald. (ANI)