[Featured Stock] Meritz Financial Rises on Announcement of Shareholder Return Policy

Meritz Financial Group is on the rise. This appears to be influenced by expectations that it will continue shareholder-friendly shareholder return policies.

As of 10:29 AM on the 23rd, Meritz Financial Group is trading at 83,700 KRW, up 8,100 KRW (10.71%) from the previous trading day. During the session, it rose to 86,200 KRW, marking a 52-week high.

On the same day, Shinhan Investment Corp. researchers Im Heeyeon and Kim Minjong stated, "In yesterday's conference call, the company presented the expected return and required return on treasury stock and announced that it will continue shareholder return policies that are more favorable to shareholders among these." They explained, "The management's view is that treasury stock repurchases are more advantageous than cash dividends, which indicates a commitment to steadily repurchase treasury stock until achieving a price-earnings ratio (PER) of 10 times."

They added, "By understanding shareholders' preference for cash, the company plans to appropriately divide returns between treasury stock and cash dividends." They emphasized, "Considering that treasury stock is more favorable than cash dividends at least until a PER of 10 times, it is highly likely that more than half of the shareholder returns will be made through treasury stock repurchases and cancellations."

They further noted, "Assuming full cash dividends as year-end shareholder returns, an additional dividend yield of up to 5% can be expected."

This content was produced with the assistance of AI translation services.