Samsung might be about to make its shareholders very happy

Samsung Electronics' shareholders, particularly those of the activist kind, have historically been critical of the company's efforts to deliver higher shareholder returns.

Now that the AI memory boom has brought tens of billions in profit for the company, it appears that Samsung is gearing up to unveil new shareholder return measures.

According to reports out of South Korea, Samsung Electronics is going to disclose a shareholder return plan later this month. The measures may include a special dividend as well as more insight into its shareholder return policy for the next three years.

The company has previously undertaken measures such as dividend enhancements and share buybacks to boost returns. A special dividend this year will see the company return a chunk of the billions it has made from memory chips to shareholders.

Samsung's 2024-2026 shareholder return policy is set to expire this year, so a new policy is due anyway. Some analysts expect that the company may double the amount of its annual shareholder return.

Whether that would be enough to make shareholders happy remains to be seen. The company is already having to spend billions on the bonus structure it has agreed with employees of its semiconductor division, which eats into the free cash flow that it can designate to boost shareholder returns.