Dividends and Buybacks: Shareholder Returns Watch — 2026-09-12

Top developments

Korean Value-up Index Outperforms as Buybacks Accelerate

The Value-up Index has risen over 80% this year, outperforming the KOSPI by 18.5 percentage points, driven by increased disclosures from listed companies. As of September 3, the number of companies disclosing corporate value enhancement plans reached 756, covering 83% of market capitalization. Major players like Samsung Electronics and SK Hynix announced significant shareholder return packages in August, including share cancellations and dividend expansions, which continue to influence market sentiment in early September.

Japanese Payout Ratios Revised Upward for FY2026

Nomura Securities reports that many Japanese companies have revised their shareholder return forecasts upward, with particularly high activity in buybacks and dividend hikes during the September-November period. The projected total payout ratio for fiscal year 2026 is expected to rise to 68.5%, up from 65.7% in fiscal year 2025, while the dividend payout ratio is forecast to increase slightly to 38.9%. This trend follows strong earnings announcements in the April-June quarter, where dividend increases were prominent across TOPIX constituents.

ING Completes Weekly Tranche of €1 Billion Buyback

ING Group announced on September 8 that it repurchased 1,360,000 shares during the week of August 31 to September 4, 2026. This execution is part of its ongoing €1.0 billion share buyback program, originally announced on April 30, 2026. The steady progression of this program highlights the continued commitment of major European banks to returning capital to shareholders amidst stable regulatory environments.

Korean Healthcare Firm Humedics Cancels 5 Billion Won in Treasury Shares

Humedics, a South Korean biopharmaceutical company, announced on September 10 that it will cancel all 184,000 treasury shares acquired over the past three months, valued at approximately 5 billion won. This move follows the company's introduction of quarterly cash dividends earlier this year, signaling a broader shift among mid-cap Korean firms to enhance shareholder value through direct share cancellation rather than just holding treasury stock.

Retail Investors Eye High-Yield Dividend Stocks Amid AI Volatility

As volatility in the semiconductor and AI sectors increases, capital is flowing into "dividend and defensive" stocks in South Korea. Local media reports that investors are increasingly seeking safe havens with stable payouts, boosting interest in high-yield dividend stocks. This rotation reflects a broader market adjustment following concerns about the valuation of AI-related assets.

Local view

In Japan, Nomura Securities' Wealth Style publication emphasizes that shareholder return metrics are becoming crucial for selecting low-PER stocks, noting that buybacks and dividends are continuing to increase. In South Korea, Hankyung Business highlights that while the Value-up Index is performing well, investors must distinguish between companies with genuine shareholder value creation plans versus those merely following trends, specifically pointing to SK Hynix's combination of share cancellations and cash dividend expansions as a benchmark.

Context & numbers

• Japan FY2026 Total Payout Ratio: Forecast at 68.5% (up from 65.7% in FY2025).
• Japan FY2026 Dividend Payout Ratio: Forecast at 38.9% (up from 38.2% in FY2025).
• Korea Value-up Index Performance: +80% YTD, outperforming KOSPI by 18.5 percentage points.
• Korea Value-up Disclosures: 756 companies disclosed plans as of August 2026, representing 83% of market cap.

On the radar

• September Ex-Dates: Investors should note that ex-dividend dates for several high-yield names are approaching between September 21 and September 25, 2026, requiring action before these cutoffs to qualify for payments.
• Dividend Aristocrats List: The list of S&P 500 Dividend Aristocrats remains at 69 companies, all having raised dividends for at least 25 consecutive years, serving as a key benchmark for income investors.