Soaring profits leave Samsung with a $40 billion cash pile

Given that Samsung is one of only two smartphone vendors in the world to post significant profits, it’s not surprising that it has been accumulating a massive pile of cash that it can plug into research and development or even return to shareholders as part of increased dividend payments. The Wall Street Journal notes that Samsung’s latest earnings report shows that the company now has almost $40 billion in cash and cash equivalents, while its net cash position minus debt is around $28.5 billion.

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Samsung tells the Journal that it plans to use all this cash for “investments sustainable for areas like facilities, R&D, and marketing that will help the company solidify or boost competitiveness” in the consumer electronics industry. The company’s investors are likely going to want a bigger piece of the profit pie, however, since the Journal says that its current dividend payments are set at least than 1% of its share price.

This article was originally published on BGR.com