South Korea's KT&G Announces $300 Million Share Buyback
According to The Korea Times, KT&G’s share buyback has drawn attention from investors interested in high-dividend stocks. Earlier this month, the company announced plans to repurchase 4.1 million of its own shares, worth about KRW 342.7 billion (USD 288.1
According to the Korea Times, KT&G's stock buyback has attracted the attention of investors interested in high-dividend stocks.<\/span><\/div>
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Earlier this month, the company announced it would repurchase 4.1 million shares of its own stock worth approximately 342.7 billion won (about $288.18 million) to enhance shareholder value. These shares will be purchased through the exchange before February 4.<\/span><\/div>
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It also announced a medium- to long-term shareholder dividend policy—KT&G plans to pay approximately 2.75 trillion won by 2023 using its existing cash reserves.<\/span><\/div>
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Over the past 20 years, KT&G has paid high dividends to shareholders, with an average payout ratio of 50.8%, higher than the average ratio of 40% for the Korea Composite Stock Price Index and 41% for the S&P 500. The company has paid dividends for 22 consecutive years since its listing in 1999.<\/span><\/div>
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KT&G's performance in the third quarter of this year slightly exceeded market expectations. The consolidated sales for the third quarter reached 1.57 trillion won, a 7.2% increase from the same period last year, but operating profit fell by 2.3% to 423.9 billion won.<\/span><\/div>
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The sales growth was driven by KT&G's heated tobacco business and the growth of its overseas cigarette subsidiaries. However, operating profit was affected by a decrease in cigarette exports and a delayed recovery of KT&G's non-tobacco subsidiaries.<\/span><\/div>
