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SEOUL - South Korean tobacco company KT&G announced a 200 KRW increase in its interim dividend to 1,400 KRW per share, according to a press release statement issued Thursday.
The dividend increase follows strong first-half results, with revenue exceeding 3 trillion KRW and the company recording a third consecutive quarter of growth in both revenue and operating profit.
KT&G’s global cigarette segment reported what the company termed "triple growth" for five consecutive quarters, with revenue up 30.6%, sales volume increasing 9.1%, and adjusted operating profit rising 51.1% compared to the same period last year.
The company has maintained or increased its dividend annually since its initial listing in 1999, marking 26 consecutive years of dividend payouts. Recent dividend per share figures show an upward trend, with 5,000 KRW in 2022, 5,200 KRW in 2023, and 5,400 KRW in 2024.
"The board resolved to raise the interim dividend based on steady first half results," said KT&G CFO Sang-Hak Lee during the Q2 earnings report session on August 7. "We will continue to make room for dividend growth through share repurchases."
Between 2024 and 2027, KT&G is implementing a shareholder return program that includes canceling 20% of issued shares. This reduction in outstanding shares, while maintaining total annual dividend payout around 580 to 590 billion KRW, creates additional capacity for per-share dividend growth.
The company also announced a target of double-digit annual operating growth during its earnings report session.
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