The Board of Directors of Saudi Telecom Company (STC) (7010) has recommended increasing its annual cash dividends from SAR 1.6 to SAR 2.2 per share.
This increase will apply for the next three years, raising total dividends from SAR 8 billion to SAR 11 billion.
More Dividends
The company stated that the “new dividend distribution policy” commits to distributing SAR 0.55 per share for each quarter.
This will start with the distribution for the fourth quarter of the current year and will continue until the third quarter of 2027.
The recommendation for the increase is based on the group’s “strong financial position” and its excellent operational performance, supported by its expansion strategy.
So what
STC’s share price jumped nearly 9% on Sunday morning following the announcement of the decision.
The dividend distribution policy will be presented to the company’s General Assembly at its upcoming meeting, which will be announced later.
Some context
The Board of Directors had decided to distribute approximately SAR 2 billion in cash dividends for the second quarter of 2024, at SAR 0.4 per share.
This came after the company’s quarterly net profit rose by around 10% YoY, reaching SAR 3.3 billion.
Now what
The Saudi telecom giant indicated that it “may consider” paying additional dividends after evaluating its financial position, future outlook, strategic investments, and the company’s capital requirements.
