Samsung has dismissed smartphone market saturation fears and announced its plans to increase its dividend yield and bring new technology in the smartphone space.
On Wednesday, November 6, top executives from Samsung addressed analysts about its future growth prospects and plans on how to spend its $50 billion cash.
The company announced that shareholder's return is at their lowest in the last five years. In 2012, Samsung shareholders received a profit of 5.1 percent compared to a return of 15.8 percent in 2007.
The South Korea-based Samsung conveyed its message to shareholders that the company intends to make stock more attractive and it will aim to nearly double the dividend for 2013. The company will pay dividend in 2014 and the dividend amount is expected to be one percent of the share price. Moreover, the company also announced that it will review its shareholders return policy every three years.
"Our management feels that our current price-to-earnings multiple does not fully reflect our profit growth and our leadership position in the IT industry," said Lee Sang-Hoon, Chief Financial Officer at Samsung. "Going forward we will put more emphasis on direct shareholder returns while maintaining our strategy of growth."
Samsung is a well-known smartphone maker with its handsets enjoying popularity throughout the world. The smartphone space is replete with handsets from various companies; however, new technology is implemented in latest handsets. Smartphone makers like Apple, Samsung, Nokia, HTC and more are very actively releasing handsets every year and with increasing competition, consumers will see more handsets with better technology. Samsung being a key smartphone maker will also continue to launch newer handset with latest technology.
The Korean company also unveiled its plans to acquire businesses, which can offer more technological expertise to Samsung. Undoubtedly, with the upward trend in the smartphone and tablet space, consumers will hope that Samsung will deploy next-generation technology to its mobile devices as well.
Samsung has already unveiled its plans to launch flexible display smartphones and has also demoed some prototypes devices.
Many companies hold analysts meetings on a regular basis; however, this is the first time since 2005 that Samsung has held such a meeting.
