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Samsung is one of the largest technology and electronics corporations in the world and is present in a variety of markets, such as consumer electronics, semiconductors, IT and mobile communications, audio systems, insurance, medical devices, etc.
Founded in 1938 in South Korea, Samsung has become one of the leading players in the global consumer electronics market and has diversified into dozens of other industries through a complex web of subsidiaries.
With a diversified business model and immense importance within the Korean economy, Samsung attracts billions of dollars in foreign capital to its stock every year.
Samsung is known as one of three “chaebols” of South Korea, which are business conglomerates held by individuals or wealthy families.
Samsung Electronics is the pinnacle of the Samsung chaebol and one of the largest consumer electronics companies in the world. With slowing consumer demand and bearish market sentiment, investors may be wondering what the future holds for Samsung and its stock, which is listed on the Korea Exchange (KRX).
If you are interested in investing in Samsung stock, but unsure where to start - this investfox guide on Samsung stock is for you.
Samsung’s stock performance over the past year has been mixed. Troubling economic conditions on the global market caused the stock to drop off towards the end of 2022. However, the start of 2023 marked a gradual comeback for the stock, which has only lost 2.5% of its market value over the past 12-month period.
Samsung had pledged to invest upwards of $150 billion into its semiconductor business over the next decade and unveiled plans to enter the electric vehicle market, which would give the Samsung Group another major source of revenue down the line.
The post-Covid consumer spending boom served as a great boost for Samsung’s bottom line - increasing profits and bringing in cash to fund future projects. The group’s total revenues increased from KRW 230.4 billion in 2019 to KRW 302.2 billion in 2022. This massive revenue growth tapered off towards the end of 2022, while net earnings increased substantially, with the Q4 2022 results showing an especially large drop off in the company’s quarterly revenues:
The brief period of operational issues was not enough to pose a long-term threat to Samsung’s bottom line, as the company is well-diversified across critical industries that are prone to swings in consumer demand, which is regularly accounted for by Samsung’s management.
An attractive dividend yield of 2.20% also adds to the long list of reasons why investors seeking to diversify their portfolios into Asian markets should keep Samsung stock as a top priority.
Before investors risk their capital by investing in Samsung stock, it is critical to consider the broader implications of investing in the company, as well as the challenges and opportunities that could lie ahead for Samsung.
Yes. Samsung has a long track record of dividend payments and as of April 2023 maintains a 2.20% annual dividend yield.
Samsung Electronics is publicly traded on the Korea Exchange (KRX), as well as on the London Stock Exchange (LSE) and the Luxembourg Stock Exchange (LuSE). The Samsung Group, which is the parent company of Samsung Electronics, is a privately held entity.
Samsung is one of the largest conglomerates in the world and is present in a wide range of sectors, which makes its stock more stable than some of its counterparts. The stock also offers a healthy 2.20% annual dividend yield.