[Click eStock] "KT Evolves Shareholder Return Policy with Treasury Stock Cancellation and Quarterly Dividends"

KRW 450 Billion Worth of Treasury Shares Likely to Be Gradually Cancelled
Quarterly Dividends Expected to Be Introduced at This Week's General Meeting

Daishin Securities analyzed on the 21st that KT's shareholder return policy has been evolving even before the introduction of the value-up program. They maintained a 'Buy' investment rating and a target price of 48,000 KRW. KT's closing price on the previous trading day was 37,300 KRW.

Kim Hoe-jae, a researcher at Daishin Securities, stated, "KT's shareholder return policy has evolved even before the introduction of the value-up program," adding, "The practical use of treasury stock is cancellation, but KT, which has used treasury stock for strategic partnerships, currently holds 4.7% treasury stock worth 450 billion KRW, and we believe there is a high possibility of phased cancellation."

KT plans to strengthen stock price stability by introducing quarterly dividends. The introduction of quarterly dividends is on the agenda for the upcoming shareholders' meeting. Researcher Kim said, "KT is a representative dividend stock, but since it only paid year-end dividends, it took considerable time for the stock price to recover after the ex-dividend date," adding, "KT's mid-term shareholder return policy is to combine dividends and treasury stock under the resource of 50% of adjusted net income, while guaranteeing a minimum dividend per share (DPS) of 1,960 KRW." In 2023, KT decided to invest 510 billion KRW to pay a minimum DPS of 1,960 KRW in dividends and to acquire and cancel treasury stock worth 27.1 billion KRW.

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