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KT&G ups dividend payouts in 2 years amid criticism

Collected: 2017.01.20

Distributed: 2017.01.23

Source: Go Direct

South Korea’s leading tobacco producer KT&G Corp. said in a regulatory filing Thursday it was increasing dividend payout after 2016 settlements to 3,600 won ($3.06) per common share versus 3,400 won in the previous year.

The increase would bump up the company’s total payout to shareholders by 30 billion won to 454.5 billion won. Its dividend yield ratio, the share of payout relative to its stock price would be 3.42 percent. Shares of KT&G ended Thursday at 101,000 won, up 2.96 percent, or 2,900 won, from the previous session.

KT&G also said in the filing that it raked in 304.9 billion won in operating profit in the fourth quarter in 2016, up 15.6 percent on year. Sales were up 27.3 percent from a year-ago period to reach 1.1 trillion won. For the whole of 2016, operating profit rose 7.6 percent to 1.47 trillion won. Sales gained 8.0 percent to 4.5 trillion won.

The increase in payout in two years comes amid shareholders’ complaint over its shareholder benefit policy. The company had been stingy in payout despite sharp surge in profit and sales from government-led spike in tobacco prices in 2015.

Payout ratio against cash reserves slipped to 41.4 percent in 2015 from 70.6 percent in 2013. Dividend yield ratio fell to a 10-year low of 3.08 percent in 2015 from 4.16 percent in 2013.

By Lee Yong-gun

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