Orion Group said on the 11th it will pay cash dividends totaling 204.6 billion won, up 57.7 billion won from a year ago. This is expected to strengthen its shareholder-return policy.
At a board meeting held that day, Orion Group approved cash dividends for the operating company Orion and the holding company Orion Holdings. Orion set its per-share dividends at 3,500 won, up 40% from 2,500 won last year. The total dividends are 138.4 billion won.
Orion Holdings finalized its per-share dividends at 1,100 won, up 37% from 800 won last year. The total dividends are 66.2 billion won. Orion Holdings' dividend yield reaches 5%, higher than market interest rates.
On a consolidation basis, Orion's payout ratio was 36%, up 10 percentage points (p) from 26% last year. For Orion Holdings, it was 55%, up 25 percentage points from 30% last year. In particular, Orion Group also met the "high-dividend company requirement," which qualifies for separate taxation on dividend income introduced by the government in January to reinvigorate the capital market.
The shareholders meetings of Orion and Orion Holdings are on the 26th of next month. The record date for dividends is Mar. 31 for both companies. Earlier, through the "plan to enhance corporate value" disclosed in June last year, Orion announced shareholder-return reinforcement policies, including: ▲ implementing a dividends policy with a payout ratio of at least 20% ▲ gradually raising the payout ratio over the next three years ▲ reviewing interim dividends.
An Orion official said, "We plan to expand our growth base by increasing production capacity based on domestic and overseas investments going forward," adding, "Along with sustained growth, we will enhance shareholder value and, over the mid to long term, strengthen a virtuous cycle in which growth and shareholder returns reinforce each other."