Shares of Samsung surged 4.5 percent to 1,181,000 won at the close of trade in Seoul, the biggest gain in 14 months, after the company said it will announce a shareholder return policy in January.

That sparked speculation it may boost dividends after a slump in its shares, with the stock 14 percent this year after a 9.9 percent decline in 2013.

“Samsung was mainly focused on capital expenditure in the past quarters but after the call today, I could sense some changes made in their stance on the dividend policy,” said Greg Roh, a Seoul-based analyst at HMC Investment Securities Co. “That is sending a positive spirit in the market.”

Net income, excluding minority interests, fell 49 percent to 4.14 trillion won ($4 billion) in the three months ended September, Samsung said today. That’s the lowest profit since the fourth quarter of 2011.

Samsung “cautiously expects” an increase in fourth-quarter profit on seasonal demand for TVs, with flat-panel TV shipments forecast to rise 40 percent, and growth at the chip division, the company said in an e-mailed statement.

David Fuller's view

Samsung Electronics remains an extremely successful company in the consumer and industrial electronics sector, but the competition is fearsome and becoming more so with the increasingly rapid pace of technological innovation. The share has been top heavy since 2013 but this week’s upward dynamic indicates a low of at least near-term significance.  Samsung is also cheap at an estimated p/e of 8.41 and a dividend hike to boost the modest yield of 1.21% would certainly increase investor interest.