SEOUL (Xinhua) – Hyundai Motor, South Korea’s largest automaker, plans to raise dividend payment from next year, a regulatory filing showed on Wednesday.
Hyundai will lift dividend payment for 2014 and consider ways of returning corporate profits to shareholders, such as interim dividend, from 2015, the company said in a statement. The 2014 dividend is paid in early 2015.
The carmaker is reportedly mulling a 30-50 per cent hike in its annual dividend. Hyundai paid out 1,950 won (1.8 US dollars) per common share in early 2014. The hike would increase the annual dividend to 2,500-3,000 won.
The dividend payout ratio, which stayed around 10 per cent in the past four years, is expected to rise further. The ratio refers to the percentage of dividend to net income.
The dividend increase came as the government pressured companies to lift dividend payments as part of efforts to raise cash holdings of consumers and stimulate private consumption.