SK hynix Announces 25% Hike in Dividend in New Shareholder Return Program
SK hynix announced a new shareholder return program for 2025-27, increasing its annual fixed dividend by 25% to 1,500 won per share from 1,200 won. The total cash dividend is expected to reach 1 trillion won annually. The company will maintain its policy of allocating 50% of accumulated free cash flow for shareholder returns and set aside 5% for financial structure enhancement. Additionally, SK hynix introduced a 'Value Up' initiative that includes Capex Discipline, maintaining annual investment at mid-30% of revenues. The company aims to balance shareholder returns with financial soundness while strengthening its position in AI memory.
SK hynix ha annunciato un nuovo programma di ritorno per gli azionisti per il periodo 2025-27, aumentando il suo dividendo fisso annuale del 25% a 1.500 won per azione, rispetto ai 1.200 won precedenti. Si prevede che il dividendo totale in contante raggiunga 1 trilione di won all'anno. L'azienda manterrà la sua politica di destinare il 50% del flusso di cassa libero accumulato per i ritorni agli azionisti e metterà da parte il 5% per il miglioramento della struttura finanziaria. Inoltre, SK hynix ha introdotto un'iniziativa 'Value Up' che include la Disciplina degli Investimenti, mantenendo gli investimenti annuali intorno al 30% dei ricavi. L'azienda mira a bilanciare i ritorni per gli azionisti con la solidità finanziaria, rafforzando al contempo la sua posizione nella memoria AI.
SK hynix anunció un nuevo programa de retorno para accionistas para 2025-27, aumentando su dividendo fijo anual en un 25% a 1,500 won por acción desde 1,200 won. Se espera que el dividendo total en efectivo alcance 1 billón de won anualmente. La empresa mantendrá su política de destinar el 50% del flujo de caja libre acumulado a retornos para accionistas y reservará el 5% para el fortalecimiento de la estructura financiera. Además, SK hynix presentó una iniciativa 'Value Up' que incluye la Disciplina de Capex, manteniendo la inversión anual en alrededor del 30% de los ingresos. La empresa busca equilibrar los retornos a los accionistas con la solidez financiera, al mismo tiempo que fortalece su posición en memoria AI.
SK hynix는 2025-27년을 위한 새로운 주주 환원 프로그램을 발표하며 연간 고정 배당금을 25% 올려 1,200원에서 1,500원으로 증가시켰습니다. 총 현금 배당금은 연간 1조 원에 이를 것으로 예상됩니다. 회사는 주주 환원을 위해 누적 자유 현금 흐름의 50%를 배분하고 재무 구조 개선을 위해 5%를 적립할 방침입니다. 또한 SK hynix는 Capex Discipline을 포함하는 'Value Up' 이니셔티브를 도입하여 연간 투자를 수익의 중간 30% 수준으로 유지할 계획입니다. 회사는 주주 환원과 재무 건전성의 균형을 맞추면서 AI 메모리 분야에서의 위치를 강화하고자 합니다.
SK hynix a annoncé un nouveau programme de retour pour les actionnaires pour 2025-27, augmentant son dividende fixe annuel de 25% à 1 500 won par action contre 1 200 won auparavant. Le dividende total en espèces devrait atteindre 1 trillion de won par an. L'entreprise maintiendra sa politique de répartir 50% des flux de trésorerie libre cumulés pour les retours aux actionnaires et mettra de côté 5% pour améliorer sa structure financière. De plus, SK hynix a introduit une initiative 'Value Up' qui comprend la Discipline des Capex, maintenant les investissements annuels à environ 30% des revenus. L'entreprise vise à équilibrer les retours pour les actionnaires avec la solidité financière tout en renforçant sa position dans la mémoire AI.
SK hynix hat ein neues Rückführungsprogramm für Aktionäre für die Jahre 2025-27 angekündigt, wobei die jährliche feste Dividende um 25% auf 1.500 Won pro Aktie von zuvor 1.200 Won erhöht wird. Die Gesamtsumme der Bargelddividende wird voraussichtlich jährlich 1 Billion Won erreichen. Das Unternehmen wird seine Politik beibehalten, 50% des kumulierten freien Cashflows für die Rückführung an die Aktionäre zu verwenden und 5% für die Verbesserung der finanziellen Struktur zu reservieren. Darüber hinaus hat SK hynix eine Initiative 'Value Up' eingeführt, die eine disziplinierte Investitionspolitik beinhaltet und die jährlichen Investitionen bei etwa 30% des Umsatzes hält. Das Unternehmen strebt an, die Renditen für die Aktionäre mit finanzieller Solidität in Einklang zu bringen und gleichzeitig seine Position im Bereich KI-Speicher zu stärken.
- 25% increase in annual fixed dividend to 1,500 won per share
- Total cash dividend expected to reach 1 trillion won annually
- 50% of free cash flow allocated to shareholder returns
- Potential for additional shareholder returns if financial targets are met by 2027
- Company projecting all-time high financial results for current year
- 5% of free cash flow diverted to financial structure enhancement
- Continued volatility expected in memory business
- Investment spending capped at mid-30% of revenues
- Annual fixed dividend to rise
25% to1,500 won a share, according to shareholder return program for 2025-27 - Separate "Value Up" plan stipulates capex discipline to maintain scale of investment at appropriate level
- New plans aimed at bringing shareholder a return that matches company's growth, while keeping financial structure stable
According to the new shareholder return program, SK hynix will maintain the existing principle of allocating half of the accumulated free cash flow for resources for shareholder return, while raising the annual fixed dividend (minimum dividend per share that SK hynix plans to pay out every year) by
With the hike in the dividend, total amount of the cash dividend is forecast to grow to
The move is aimed at meeting the expectations of the shareholders who have helped SK hynix overcome difficulties and challenges and advance to a leading global AI memory provider.
Despite an expected continuity of a volatile memory business, SK hynix will make its utmost efforts to protect corporate value by pursuing a balance between shareholder return and financial soundness.
For this, the company established specific targets for financial soundness such as net cash* and optimal cash level**, while deciding to put aside
*Net Cash: a company's cash balance after liabilities are subtracted |
**Optimal Cash Level: resources for annual investment aimed at preparing for future growth |
SK hynix plans to proceed with an additional return to shareholders within the extent that its finances are maintained sound if its financial targets are met until 2027 when the three-year program comes to an end. It will also review the possibility of an early return to shareholders prior to the expiration of the program if a better-than-expected business performance brings a meaningful increase in the level of free cash flow.
Separately, SK hynix also introduced its "Value Up" initiative aimed at bringing corporate value a notch higher.
The Capex Discipline from the plan stipulates that total amount of annual investment has to stay at an average mid
The two plans come at a time when SK hynix prepares to make its leadership in the AI memory space more concrete by establishing a desirable technology roadmap for future amid diversifying customer demands and an increasing portion of premium products in the full-fledged AI era.
Kim Woohyun, Vice President and Chief Financial Officer, said that SK hynix's corporate value has risen sharply after successfully weathering a downturn amid growing optimism that it will report this year all-time high financial results well above those during a super cycle in 2018.
"Our goal is to promote the company's long-term prosperity together with our shareholders by carrying out the policies for shareholder return that matches the company's growth and stability of the financial structure," said Kim.
About SK hynix Inc.
SK hynix Inc., headquartered in
View original content:https://www.prnewswire.com/news-releases/sk-hynix-announces-25-hike-in-dividend-in-new-shareholder-return-program-302317365.html
SOURCE SK hynix Inc.
FAQ
What is SK hynix's new dividend amount for 2025-2027?
How much of SK hynix's free cash flow goes to shareholders?
What is SK hynix's expected total annual dividend payout?
What is SK hynix's new Capex Discipline target?
