Saudi STC approves three-year dividend policy
The telecom operator may consider special dividends depending on its financial health
Dubai: Saudi Telecom Company (STC) Group introduces a new three-year dividend policy, pledging a quarterly pay-out of $0.15 (Dh0.55) per share, starting from Q4 2024 and extending through to Q3 2027.
This policy is pending shareholder approval, with the date of the general assembly to be announced soon.
The telecom operator may consider special dividends depending on its financial health, prospects, strategic investments, and capital expenditure needs, according to a statement by the Saudi exchange.
In February this year, STC proposed a special dividend for 2023 following a 9 per cent year-on-year increase in profits.
The proposed special dividend could amount to nearly $1.3 billion (Dh4.7 billion), or $0.27 (Dh0.99) per share, contingent on shareholder approval.
Additionally, the company has declared a cash dividend of $533 million (Dh1.9 billion), or $0.11 (Dh0.4) per share, for Q4 2023.
If the special dividend is approved, the total STC dividend distribution will reach $0.69 (Dh2.53) per share, equating to 26 per cent of the stated value per share.