agent Entrepreneur logo
MenuMENU
SearchSEARCH

Hyundai Motor’s Biggest-Ever Dividend Greeted with Outlook Concern

Hyundai Motor Co announced its biggest-ever dividend on Thursday to appease shareholders angered by a $10 billion property buy, but the payout failed to distract investors from growth prospects clouded by declines in the rouble and yen, reported Reuters. Shares of the Korean automaker – the world’s fifth-biggest when paired with sister Kia Motors Corp ... Read More »

January 27, 2015
2 min to read


Hyundai Motor Co announced its biggest-ever dividend on Thursday to appease shareholders angered by a $10 billion property buy, but the payout failed to distract investors from growth prospects clouded by declines in the rouble and yen, reported Reuters.

Shares of the Korean automaker – the world’s fifth-biggest when paired with sister Kia Motors Corp – ended at a more than two-week low after the announcement. Earlier in the day, Hyundai missed analyst estimates by posting a 19 percent decline in October-December net profit.

Ad Loading...

Hyundai-Kia splashed out on land for new headquarters last year as economic turmoil in Russia undermined earnings in a country where the pair rank second. Meanwhile in the U.S., the pair’s No.2 market, a weak yen made rival Japanese cars cheaper.

Currency risks are likely to persist in Russia as well as in other emerging markets this year, Hyundai President Lee Won-hee said after the automaker released its earnings.

In the U.S., where a weak yen lets Japanese makers offer aggressive discounts, Hyundai’s average sales incentive will stay at the 2014 level even with sales of new models such as the Sonata sedan and the Tucson sport utility vehicle, Lee said.

LOW EXPECTATIONS

Hyundai raised its year-end dividend for 2014 by over 50 percent to 3,000 won per share, and said it would continuously increase payouts in coming years.

Ad Loading...

Earlier, Hyundai reported fourth-quarter net profit of 1.66 trillion won ($1.53 billion), compared with the 1.98 trillion won average estimate of 14 analysts polled by Thomson Reuters I/B/E/S.

“Market expectation has been lowered a lot. It’s unlikely to get worse this year,” said senior auto analyst Suh Sung-moon of Korea Investment & Securities. “Whether the Tucson is successful or not is key to reviving profitability this year.”

Hyundai aims to lift sales by 1.8 percent this year to 5.05 million vehicles but should exceed that target, Lee said. In the fourth quarter, strong sales and a weaker won helped push up revenue by 8 percent to 23.57 trillion won, the automaker said.

“We expect competition to intensify in overseas markets, while makers of imported cars step up sales, boosted by tariff cuts and currency effects in the domestic market,” Hyundai said in a statement.

As of Wednesday’s close, Hyundai shares were down 25 percent over the past year, during which the property buy triggered a selloff, Thomson Reuters data showed.

Ad Loading...

That makes Hyundai stock the worst performer among major automakers as well as the cheapest. Its 12-month forward price-to-earnings ratio is 5.5 compared with 8.3 for Toyota Motor Corp and 9.3 for Ford Motor Co, according to Thomson Reuters data.

Topics:Industry

More Industry

The outside of a blue Gregg Young Chevrolet dealership.
Industry•by Lauren Lawrence•October 22, 2026

Nebraska Rooftop Changes Hands

The Gregg Young Automotive Group has sold its second dealership to Janssen Auto Group, both in Plattsmouth, Neb.

Read More →
Two white men's shaking hands
Industry•October 15, 2026

Penske Auto Group Deal a Record

The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.

Read More →
Rows of cars parked in exterior lot
Industry•by Hannah Mitchell•October 8, 2026

War Toll a Damper on Used Auto Prices

Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.

Read More →
Ad Loading...
Mechanic cleaning interior of engine
Industry•by Lauren Lawrence•October 8, 2026

Bridge the Maintenance Gap

With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.

Read More →
Ford F-150 truck rounding a curve
Industry•by Hannah Mitchell•October 1, 2026

California Store Has New Owner

The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.

Read More →
crane lowering a pipeline into the ground
Industry•by Lauren Lawrence•October 1, 2026

BMW Plant Pursues Cleaner Energy

BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.

Read More →
Ad Loading...
Two dodge cars outside of dealership.
Industry•by Lauren Lawrence•September 17, 2026

Auto Affordability Inches Up

The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.

Read More →
Five men smiling for photo in front of Honda car dealership.
Industry•by Lauren Lawrence•September 10, 2026

Ohio Auto Group Under New Ownership

After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.

Read More →
Blue and white RV parked on beach facing the ocean.
Industry•by Lauren Lawrence•September 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Ad Loading...
Photo of two men and one woman on a discussion panel
Industry•by Hannah Mitchell•September 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Ad Loading...