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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] Hyundai Motor plans to repurchase and retire shares worth 4 trillion KRW over the next three years and increase the minimum dividend per share to 10,000 KRW. Additionally, the company will introduce the Total Shareholder Return (TSR) concept starting next year to further strengthen its shareholder-friendly strategy.
On the 28th, during the '2024 CEO Investor Day' held at the Conrad Hotel in Yeouido, Seoul, Hyundai Motor announced these plans to investors, analysts, and credit rating agency representatives.
Hyundai Motor has set a goal of achieving a TSR of 35% over the three years from 2025 to 2027. This target includes dividends, share buybacks, and retirements, representing a 10 percentage point increase from the previous minimum dividend payout ratio of 25%. The company plans to flexibly manage dividends and share buybacks within this range.
Seung-jo Lee, Hyundai Motor's CFO, stated, "Our intention is not only to focus on profitability but also to expand our shareholder return policy by considering the repurchase and retirement of shares." He added that within the 35% TSR range, Hyundai will make decisions on share buybacks and retirements, taking into account factors such as preferred stock discounts and return on equity (ROE).
This year, the minimum annual dividend will be raised to 10,000 KRW per share. The current quarterly dividend will also be increased from 2,000 KRW to 2,500 KRW per share. Furthermore, when repurchasing shares in the future, Hyundai Motor plans to clearly specify the timing of the buyback, including categories such as reemployment buybacks, funding for support projects, and others. Lastly, the company plans to repurchase a total of 4 trillion KRW worth of shares, including both common and preferred stock, over the next three years.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
