Samsung Life Insurance's dividend income could surge in 2027, supported by its investment in chip-making giant Samsung Electronics, Hana Securities analyst Y.J. Ahn says. The insurer owns more than an 8% stake in the chipmaker and dividends from the holding are a major source of investment income. Ahn expects the chipmaker's stronger free cash flow generation to lead to higher dividend payouts during 2024-2026, boosting the insurer's net profit by 6 trillion won next year, up from an earlier estimate of 1.3 trillion won. Samsung Electronics has pledged to use 50% of its free cash flow for shareholder returns, including regular and special dividends, he notes.(kwanwoo.jun@wsj.com)
Samsung Life's Dividend Income Could Surge in 2027 — Market Talk
Earlier from Samsung Life Insurance
- Samsung Life Insurance: Q1 net income up 89.5% YoY, CSM and health product sales surged, K-ICS ratio at 210%
- Why Hedge Funds Still See Value in Red-Hot South Korean Stocks — Barrons.com
- Samsung Life Insurance: Net profit up 9.3% YoY to W2.3 tn, with DPS up 17.8% and K-ICS ratio at 198%
- Samsung Life Insurance: Strong CSM and profit growth, robust capital, and focus on high-margin products and returns