South Korean tech giant Samsung Electronics Co. is expected to unveil a near 40-percent jump in cash dividends this week, industry sources said Sunday, following such decisions by Hyundai Motor Co. and Kia Motors Corp.
Samsung had paid out a total of 2.16 trillion won ($1.99 billion) in dividends to its shareholders for 2013, or 14,300 won per share, according to the sources.
They said that the company will likely give a 40 percent increase in cash dividends for 2014, citing Samsung's earlier announcement that it was considering paying dividends that are 30 or 50 percent more than last year.
The 40-percent growth can translate into a total amount of 3 trillion won in dividend payouts for 2014, they added.
The planned payout increase will be disclosed on Thursday with its 2014 earnings report.
Samsung's dividend rate stood at 1 percent per share, far lower than other global tech firms with 3 to 4 percent of dividend rates.
Market watchers noted that the world's largest smartphone maker is seeking ways to placate investors amid a plunge in its profits from its mainstay mobile devices business due to rising competition from Chinese players with low-end models.
In a guidance released on Jan. 8, Samsung projected 24.94 trillion won in operating income for 2014, down 32.21 percent from a year earlier.
Samsung's move came as the country's No. 1 and 2 carmakers Hyundai and Kia announced such decisions to expand dividend payouts by around 50 percent despite their lackluster performance. Hyundai and Kia will payout a total of 817.3 billion won and 404.1 billion won in dividends, respectively. (Yonhap)