Dividend Policy
In order to increase shareholder value and give shareholders a chance to earn better returns, the LG Chem comprehensively considers investment, cash flow, financial structure, and dividend stability when determines its dividend payout. In this regard, on October 14, 2020, the LG Chem announced medium-to-long-term dividend policies as follows.
① We aim to maintain a dividend payout ratio of 30% or more based on consolidated financial statements net income (excluding one-time non-recurring income)
② We work to eliminate uncertainties due to spin-off and to increase shareholder value, with a cash dividend of at least KRW 10,000 per common share is promoted for the next three years (2020 ~ 2022)
As described above, we will maintain a constant dividend payout ratio policy in the medium to long-term and continue to strive to increase corporate and shareholder value. In addition, we will communicate with the market by providing information on expected future dividends to be paid in the next year through conference calls at least once a year.
① We aim to maintain a dividend payout ratio of 30% or more based on consolidated financial statements net income (excluding one-time non-recurring income)
② We work to eliminate uncertainties due to spin-off and to increase shareholder value, with a cash dividend of at least KRW 10,000 per common share is promoted for the next three years (2020 ~ 2022)
As described above, we will maintain a constant dividend payout ratio policy in the medium to long-term and continue to strive to increase corporate and shareholder value. In addition, we will communicate with the market by providing information on expected future dividends to be paid in the next year through conference calls at least once a year.
Dividend Summary for Last 10 Fiscal Years
(Face Value Per Share: 5,000 Won, Unit : KRW bn)
| Division | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Net income | 313 | 1,473 | 1,945 | 1,281 | 1,153 | 868 | 1,266 | 1,495 | 2,138 | 2,158 | |
| Total dividends | 154 | 460 | 460 | 368 | 331 | 295 | 295 | 295 | 295 | 295 | |
| Dividend Payout Ratio (%) | 42.44 | 25.48 | 151.84 | 49.02 | 31.24 | 23.65 | 28.73 | 28.73 | 33.93 | 23.26 | |
| DPR at face (%) | Common | 200 | 240 | 200 | 40 | 120 | 120 | 100 | 90 | 80 | 80 |
| Preferred | 201 | 241 | 201 | 41 | 121 | 121 | 101 | 91 | 81 | 81 | |
| Dividend per share (won) | Common | 10,000 | 12,000 | 10,000 | 2,000 | 6,000 | 6,000 | 5,000 | 4,500 | 4,000 | 4,000 |
| Preferred | 10,050 | 12,050 | 10,050 | 2,050 | 6,050 | 6,050 | 5,050 | 4,550 | 4,050 | 4,050 | |
| Dividend Yield Ratio (%) | Common | 1.6 | 1.9 | 1.2 | 0.6 | 1.7 | 1.5 | 1.9 | 1.3 | 2.1 | 1.4 |
| Preferred | 3.4 | 4.0 | 2.7 | 1.2 | 3.1 | 2.5 | 2.8 | 1.8 | 2.8 | 2.6 | |
