SEOUL : After achieving a second consecutive record high profit in 2021, HMM is offering dividends for the first time in 11 years.
The dividends, totalling US$240 million or 48 cents per share, were proposed on 14 March and will be put up for approval at a shareholders’ meeting on 29 March.
This works out to a dividend yield of 2.2% per share, which is higher than the average market dividend rate of 2.1% paid by the 100 largest companies listed on the Korea Composite Stock Price Index for the past three years.
An HMM official said, “As of the end of 2020, the accumulated deficit over the past 10 years was KRW 4.44 trillion (US$3.74 billion), and it was possible to deduct all of this and pay out dividends due to the record-high performance last year. We will do our best to make it possible.”
The dividends were proposed on the same day that former Hyundai Glovis CEO Kim Kyung-bae was officially nominated to be HMM’s next CEO to succeed the outgoing Bae Jae-hoon. As with the dividends, Kim’s appointment will also be put up for approval at the 29 March meeting.
On Kim’s nomination, HMM said, “Kim is regarded as a logistics expert who had led the steady growth of Hyundai Glovis while serving as chief executive of the company for about nine years.
“As a veteran with broad experiences and capabilities at the executive level, he is expected to play a significant role in laying a foundation for the sustainable growth of HMM and expanding its presence in the global market.”