Samsung considers issuing ADRs, increasing dividends

In a move that would make it easier for U.S. investors to trade its shares, Samsung Electronics (SSNLF, SSNGY) is considering listing American Depositary Receipts, CFO Lee Sang-hoon said today at the South Korean giant's first analyst meeting in eight years. Any decision would be "based on the global economic recovery and changes to Korean equity market functioning in relation to the global market."

Samsung is also considering a dividend payout of 1% of its average stock price vs a current dividend yield of 0.54%. "We will put more emphasis on direct shareholder returns," Lee said.

Samsung's investor day and deliberations come amid a stagnating share price, pressure to return some of its cash mountain - which is over $50B - to shareholders, and criticism over its communications.

Samsung intends to make more international acquisitions across a wide range of fields as it looks to expand beyond its core consumer-electronics operations. The company has invested $1B in 14 firms since 2010, including in Sharp and Medison.

The consumer-electronics firm is targeting annual sales of $400B by 2020 vs a possible $219B this year, as forecast by analysts.

Comments (2)
  • alijannati
    , contributor
    Comments (86) | Send Message
    This is one ADR that I would by in a heartbeat. I'll be on a look out for whe this happen. Please keep me and the other readers informed of any updats on this if you can. Thanks
    6 Nov 2013, 11:06 AM Reply Like
  • djfunkydj
    , contributor
    Comments (93) | Send Message
    Typical reaction by the big boys in ny cuz samsung isnt a nyse sweetheart that they can push. It has the best financials r&d and product pipeline among all its competitors yet gets punished cuz it doesnt try to pay off investors with high dividend yields to make up for fundamental weakness. Whatever happened to buying stock based upon strong performance and financials..guess e1 is 2 busy overpaying for sirius, intel and now twitter
    7 Nov 2013, 06:10 PM Reply Like
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