Dividends and Samsung predicts profit plunge

Samsung Electronics Co Ltd forecast a steep plunge in profit as the US China trade war wrecks havoc on global chip and smartphone markets.

In an article by Ju-Min Park and Heekyong Yang of Reuters the South Korean tech giant is on target to post profit declines as chip prices fell on a global supply glut. Adding to the problem is US trade sanctions on Chinese telecom maker Huawei Technologies who is a key Samsung client.

Another factor is Korea and Japan are having disagreements over apologizes over Japan use of forced wartime labor in WW II. Japan had imposed curbs on exports to South Korea of materials used in memory chips and smartphones.

April June operating profit fell 56% to $7.2 billion or 6.5 trillion won on revenues of 56 trillion won.

Linking to dividend paying stocks, here is a company which is technically outside the US-China trade war but is entangled in it. The Japanese and Germans both used forced labor to run their war machinery in WW II, the effects linger more than 60 years later. Although profits are down, the company is still genetating profits and one day things will return to normal. How long should you wait?

There are more questions than answers, till the next time- to raising questions.




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