"460 Million Won Dividend for 1,000 Samsung Electronics Shares" Real Return Above 5% When Excluded from Health Insurance Premiums... Investors Rush for Final Dividend Rights

"30 Trillion Won" Record Dividend Draws Foreign and Institutional Buying
Must Buy by September 28 for Dividend Rights; September 30 is the Record Date
Separate Taxation and Health Insurance Favorables Boost Investment Appeal

With Samsung Electronics signaling a record-breaking cash dividend payout totaling approximately 30 trillion won, investor attention is sharply focused on the company. Ahead of the ex-dividend date for the third quarter, buying interest from foreign and institutional investors has increased. At the same time, the appeal of dividends has grown as policies for separate taxation of high-dividend companies and measures to reduce the burden of health insurance premiums have aligned.

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On August 21, Samsung Electronics announced at its board meeting that it would implement a shareholder return policy totaling between 90 trillion and 110 trillion won for this year. The upcoming third quarter dividend is the first step in this plan. Samsung Electronics intends to pay out about 30 trillion won in cash, including the regular quarterly dividend. Considering the previous quarterly dividend amount of around 2.45 trillion won, this means that an additional 27.55 trillion won will be distributed. Effectively, this is a special dividend.

Securities Firms Estimate Q3 DPS at 4,500 to 4,600 Won

Securities firms estimate the dividend per share (DPS) at 4,604 won according to Eugene Investment & Securities and 4,500 won according to Yuanta Securities. Eugene Investment & Securities calculated this figure based on the assumption that dividends for common and preferred shares are identical and that both existing and newly acquired treasury shares are excluded from the dividend base.

If a DPS of 4,604 won is applied, the pre-tax dividend would be 460,400 won for 100 shares, 4,600,400 won for 1,000 shares, and 46,040,000 won for 10,000 shares. If the 15.4% dividend income tax is simply deducted, an investor with 1,000 shares would receive about 3,895,000 won after tax. However, if an individual's annual financial income exceeds 20 million won, their financial income becomes subject to comprehensive taxation, so the final tax burden may differ by individual.

Must Buy by September 28 Including After-Hours to Secure Dividend Rights

The dividend record date for the third quarter falls on September 30. To secure dividend rights, investors must complete purchases by September 28. September 29 is the ex-dividend date. On the 28th, trades executed in Korea Exchange's after-market trading session (until 8 p.m.) are also recognized as transactions for that trading day. However, unfilled orders are excluded from dividend eligibility.

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Expectations for a large-scale dividend payout have pushed up the share price. On September 21, Samsung Electronics closed at 272,500 won, up 4.41% from the previous trading day and marking a five-day rising streak. In terms of market flows, foreign investors made a net purchase of 1.005 trillion won, marking a return to a net buying position after eight trading days, while institutional investors purchased 1.132 trillion won. In contrast, retail investors recorded a net sale of 2.698 trillion won. Other corporate investors, including estimated treasury share buybacks, had a net purchase of 515 billion won.

The recent rebound from the 240,000 won price range has also reflected expectations of a recovery in the semiconductor industry. Although AI investment moderation and a rise in U.S. Treasury yields caused a market correction, the easing of interest rate-related uncertainties and renewed semiconductor momentum contributed to the stock's rise. The combination of the shareholder return policy, improving industry outlook, and a shift in buying by foreign and institutional investors all played a part.

Calculating Actual Yield Must Account for Drop on Ex-Dividend Date

However, securing dividend rights does not necessarily result in a profitable investment. On the ex-dividend date (September 29), the reference share price is theoretically adjusted downward by the dividend amount.

The per-share dividend of 4,604 won is equivalent to about 1.76% of the September 18 closing price (261,000 won). In reality, the market price is affected by a combination of factors, including semiconductor industry conditions, capital flows, and interest rate trends, so it does not always fall by the exact dividend amount.

Even if shares purchased on September 28 are sold on September 29, dividend rights are retained. However, if the price fall on the ex-dividend date exceeds the after-tax dividend income, the total investment outcome can turn negative. For short-term dividend strategies, it is therefore important to consider not only taxes and transaction costs but also post-ex-dividend price movements.

The scale of shareholder returns in the year-end settlement is also a variable. Eugene Investment & Securities estimates that the remaining resources for year-end shareholder returns, after the third quarter dividend, will be between 55 trillion and 75 trillion won. If the entire residual amount is paid as cash dividends, the combined annual DPS for the third quarter and the year-end payout could reach between 13,046 won and 16,115 won. However, actual year-end shareholder returns could differ, as they may be accompanied by treasury share buybacks or cancellations.

Separate Taxation and Health Insurance Premium Exclusion Considered Positives

One advantage for dividend stocks this year is the revised tax policy. Starting in 2026, separate taxation will apply to individual shareholders’ dividend income from high-dividend companies. Eligible cases include listed companies whose cash dividend payouts are not reduced from 2024 levels and that have a dividend payout ratio of 40% or higher, or a dividend payout ratio of 25% or higher with year-over-year dividend growth of at least 10%.

Under the special provision, and separate from comprehensive taxation, the following withholding tax rates apply: 14% for up to 20 million won, 20% for more than 20 million up to 300 million won, 25% for more than 300 million up to 5 billion won, and 30% for over 5 billion won. Since Samsung Electronics maintains a policy of returning 50% of its annual free cash flow (FCF), it is regarded as being highly likely to qualify as a high-dividend company.

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Moves to ease the burden of health insurance premiums are also seen as positives. The government has been pushing to exclude dividend income from high-dividend companies—where separate taxation applies—from the income calculation for health insurance premiums. This is a factor that can raise after-tax real returns for retirees and high-net-worth individuals.

Previously, if the combined annual interest and dividend financial income exceeded 10 million won, there was a risk of losing dependent status. For example, placing 400 million won in a fixed deposit at 3% annual interest yields 12 million won per year, subjecting the individual to health insurance premiums and causing the post-tax real yield to drop to about 1.68% per year.

By contrast, if one invests 400 million won in Samsung Electronics with a 6% dividend yield, annual dividend income would be 24 million won. If this dividend income is excluded from the health insurance premium calculation, analysts say the individual could maintain dependent status and the after-tax real yield could rise to as much as 5.075% per year.

However, actual application may differ depending on the final implementation date of the policy and each individual's income and asset requirements. Therefore, it is necessary to check tax and health insurance premium conditions in detail, beyond simply calculating after-tax returns.

This content was produced with the assistance of AI translation services.