 |
[Alpha Biz=(Chicago) Reporter Kim Jisun] Hyundai Motor Company announced on the 25th that it would pay a dividend of 8,400 won per share of common stock. Including the dividends (3,000 won) for the second and third quarters of last year, the company paid out 11,400 won in dividends last year. It is the highest level ever, up 63% from the previous year. The total dividends that Hyundai Motor Company returned to shareholders last year amounted to 2.9 trillion won.
Hyundai Motor plans to keep its dividend payout ratio above 25% in the future. This means that the company will return more than a quarter of its net profit to shareholders that year. Hyundai Motors will also retire 1% (2.1 million shares) of its total issued shares every year over the next three years.
Kia will also spend 2.2 trillion won to pay dividends of 5,600 won per share. In order to keep the dividend payout ratio at 25%, the dividend amount was set like this. Kia also announced plans to acquire and incinerate treasury stocks worth 500 billion won. The total number of shares to be bought is 5.6 million. It is about 1.4% of the number of listed stocks (400 million shares).
Kia will retire half of its acquired shares in the first half of the year, while the rest will be incinerated by the end of the year to reflect its financial situation by the third quarter. Kia also retired 220 billion won worth of treasury stocks (3.3 million shares) in April last year.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
