On August 21, 2026, Samsung Electronics' board approved a record shareholder return of up to KRW 110 trillion for the year. It is the first time a Korean listed company has crossed KRW 100 trillion in annual shareholder return — roughly 5x the previous record (about KRW 20.3 trillion in 2020). A name long seen as a pure semiconductor growth stock now deserves a fresh look as a dividend stock.
This post compares the common share (005930) and the preferred share (005935) from a dividend angle, and calculates — from public figures — how much the next dividend might be and what yield that implies. All prices and share counts below are verified as of the August 21, 2026 close.
1. What was announced — structure of the KRW 100tn return
- KRW 90–110tn total shareholder return for 2026 — the peak of the 2024–2026 policy of returning 50% of free cash flow.
- ~KRW 30tn cash dividend in Q3 (including the regular dividend) — the exact per-share amount is set at the late-October board meeting, payable in November.
- A separate ~KRW 15tn buyback for employee compensation.
- The remainder (further cash dividends + buyback/cancellation) is decided at the January 2027 board once full-year results are confirmed.
The headline is that ~KRW 30tn is paid out in cash in Q3 alone — far larger than the entire prior annual regular dividend (~KRW 9.8tn).
2. Where the two shares stand (Aug 21, 2026 close)
| Metric | Common (005930) | Preferred (005935) |
|---|---|---|
| Close | KRW 281,500 | KRW 207,000 |
| Market cap | ~KRW 1,645.7tn | ~KRW 166.1tn |
| Dividend-bearing shares | ~5.85bn | ~0.80bn |
| Latest DPS | KRW 1,668 | KRW 1,669 |
| Trailing yield | 0.59% | 0.81% |
| Year-to-date price | +119% | — |
Two things stand out. First, the 0.6–0.8% yield looks tiny — not because the payout is small, but because the price more than doubled this year (+119%), inflating the denominator. Second, the preferred trades 26.5% below the common ((281,500 − 207,000) ÷ 281,500). Since the dividend is essentially identical (the preferred even gets KRW 1 more), the same money buys ~36% more yield in the preferred.
3. How big is the next dividend — the math
The Q3 cash dividend totals ~KRW 30tn, and the shares that receive it (common + preferred) total ~6.65bn. A cash dividend is paid (almost) equally per share, so:
~KRW 30tn ÷ ~6.65bn shares ≈ ~KRW 4,500 per share
(30,000,000,000,000 ÷ 6,648,649,811 ≈ KRW 4,512)
That single Q3 dividend of ~KRW 4,500 per share is about 3x the entire annual regular dividend (~KRW 1,500) — effectively a large special dividend. Against the current price, that one payment yields:
| Metric | Common (281,500) | Preferred (207,000) |
|---|---|---|
| Est. Q3 dividend/share | ~KRW 4,500 | ~KRW 4,500 |
| Yield on this one payment | ~1.6% | ~2.2% |
Note: the ~1.6% / ~2.2% above count only this single payment. But dividend yield is conventionally quoted on a full-year basis — covered next. (KRW 4,500 is a total ÷ shares estimate; the exact figure is fixed at the late-October board.)
4. How to read the dividend yield (annual basis is standard)
Dividend yield is, by convention, annual dividend per share ÷ current price × 100 — i.e. based on a full year of dividends. The figure on portals and brokerage apps is usually the last settled (trailing 12-month) dividend over the current price.
Right now that reads 0.59% (common) and 0.81% (preferred) — low not because the payout is small, but because the price surged +119% this year, inflating the denominator. In 2026, by contrast, the large special dividend lifts the annual figure sharply: the market estimates full-year 2026 DPS (incl. special) at ~KRW 8,000–9,650.
| Annual-dividend basis | Annual DPS | Common (281,500) | Preferred (207,000) |
|---|---|---|---|
| Trailing (portal figure) | KRW 1,668·1,669 | 0.59% | 0.81% |
| 2026 incl. special (low) | KRW 8,000 | 2.8% | 3.9% |
| 2026 incl. special (high) | KRW 9,650 | 3.4% | 4.7% |
Including buybacks and cancellations, the total shareholder return (~KRW 100tn) over the two shares' combined market cap (~KRW 1,811.8tn) is a ~5.5% total shareholder yield, and cancellation lifts per-share value on top of the cash dividend.
5. What if the price moves? — yield by purchase price
Once the board sets it, the dividend is fixed — so the lower your entry price, the higher your yield. Estimated annual dividend yield by purchase price is below. The bold middle columns use the 2026 special-included estimate (annual KRW 8,000–9,650); the leftmost is the trailing figure for reference.
Common (005930) — currently KRW 281,500
| Purchase price | Trailing (1,668) | Incl. special 8,000 | Incl. special 9,650 |
|---|---|---|---|
| KRW 220,000 | 0.76% | 3.6% | 4.4% |
| KRW 250,000 | 0.67% | 3.2% | 3.9% |
| KRW 281,500 (now) | 0.59% | 2.8% | 3.4% |
| KRW 310,000 | 0.54% | 2.6% | 3.1% |
| KRW 340,000 | 0.49% | 2.4% | 2.8% |
Preferred (005935) — currently KRW 207,000
| Purchase price | Trailing (1,669) | Incl. special 8,000 | Incl. special 9,650 |
|---|---|---|---|
| KRW 165,000 | 1.01% | 4.8% | 5.8% |
| KRW 185,000 | 0.90% | 4.3% | 5.2% |
| KRW 207,000 (now) | 0.81% | 3.9% | 4.7% |
| KRW 225,000 | 0.74% | 3.6% | 4.3% |
| KRW 245,000 | 0.68% | 3.3% | 3.9% |
Note: at any given price the preferred always yields more (it trades 26.5% cheaper). Percentages are annual estimates; actual dividends depend on board decisions and results.
6. Common vs preferred — for a dividend investor
- Same dividend, higher yield: the preferred pays essentially the same amount but costs 26.5% less, for ~36% more yield.
- No voting rights: the preferred has no shareholder-meeting vote — irrelevant if your goal is income, not governance.
- Liquidity/discount: the preferred is thinner and its discount widens and narrows with the market. At 26.5% the discount is historically wide, which favors the income buyer today.
Bottom line: if the goal is pure income, the preferred (005935) is the more efficient way to buy the same dividend cheaper; if voting rights, liquidity and index inclusion matter, the common is better.
7. Risks to keep in mind
- This large cash payout is largely a one-off special return; there is no guarantee it repeats at the same scale.
- KRW 4,500 is an estimate; the exact amount and record date depend on the late-October board.
- The price has already more than doubled year-to-date — chasing the dividend at the highs carries price risk larger than the yield.
- Dividends are taxed (15.4% in Korea), and large amounts may fall under comprehensive financial-income taxation.
For information only, not investment advice. Figures are as of the August 21, 2026 close; actual dividends depend on board decisions and results. Investment decisions are your own responsibility.