SK Hynix to Pay $0.26 Quarterly Dividend, to Announce Shareholder Return Plan in Q3

TradingKey - On August 7, Asia time, SK Hynix announced that it will pay a cash dividend to common shareholders in the form of a regular quarterly dividend of 375 Korean won (approximately $0.26) per share. The record date for this dividend payment is August 31, and the dividend will be paid within one month from the record date.

Meanwhile, SK Hynix stated that it is currently actively studying shareholder return schemes such as additional share buybacks, and plans to formally finalize and announce the details in the third quarter of this year.

In November 2024, SK Hynix announced its shareholder return policy for 2025 to 2027, raising the annual fixed dividend from 1,200 won to 1,500 won per share. On this basis, the company paid an additional year-end special dividend of 1 trillion won (equivalent to 1,500 won per share) in January this year based on its historical best performance. Combined with the quarterly dividends, the total dividend for 2025 will reach 1,875 won per share.

On the eve of SK Hynix's announcement of this dividend plan, market calls for South Korea's two major memory giants to increase shareholder returns were growing, with investors demanding higher dividends or greater share buybacks.

According to data from the London Stock Exchange Group (LSEG), by the end of this year, the combined net cash of Samsung Electronics and SK Hynix is expected to reach $263 billion, far exceeding that of AI chip giant Nvidia ( NVDA )'s estimated $102 billion for the same period.

Both companies have recently responded to this. SK Hynix stated during last week's earnings conference call that it is considering additional return measures and will announce relevant plans within the year. Samsung Electronics also publicly stated during its earnings call in the same period that its board of directors is currently conducting in-depth discussions on all feasible paths to enhance shareholder value.

Driven by strong demand for AI chips, SK Hynix's performance has repeatedly hit record highs in recent years, leaving it with ample cash reserves. Official financial reports show that as of the end of the second quarter, the company's cash and cash equivalents reached 88 trillion won, and its net cash reserves after deducting interest-bearing liabilities stood at 69.4 trillion won. How to balance capital expenditures and shareholder returns is a practical challenge that SK Hynix management must address.