Telecom giant Etisalat to pay off its highest ever cash dividend by April 15

Dubai: Shareholders in the UAE telecom giant Etisalat will get all of their 2020 dividend payments, including the special one, by April 15. In all, this will come to Dh1.20 a share - and the highest that Etisalat has paid.

The 2020 dividend represents 120 per cent of the nominal value of the company’s shares, with 25 per cent paid out on May 11 last, another 15 per cent on August 11, and with 40 per cent each to be paid out on April 15.

It was earlier this year that Etisalat confirmed the special dividend to reward shareholders after coming out with a healthy set of numbers despite the COVID-19 related distractions and impact on businesses.

Shareholders have also given their approval to stopping a share buyback programme Etisalat had plans for.

Revenues totalled Dh51.7 billion last year while consolidated net profit - after the federal royalty payment - was Dh9 billion, an increase of 3.8 per cent year-on-year.

Foreign ownership

The annual general assembly of the company also formally approved the increase in foreign ownership to 49 per cent from 20. It was earlier this year that the move was mooted, and which was also repeated by Dubai’s du.

Currently, foreign shareholding in Etisalat is at 4.97 per cent. The stock has been enjoying a strong run in recent days and closed at Dh21.14 on Wednesday.

A "historical milestone was the approval of 49 percent ownership limit of non-UAE nationals that will help diversify the investor base and add further value to our current shareholders as well as bring liquidity and depth in Etisalat’s financial capabilities," said Obaid Humaid Al Tayer, Chairman. 

"Etisalat was able to deliver on its vision in the current macro-economic climate. The unprecedented economic headwinds caused by COVID-19 have certainly demanded agility across our operations and we have demonstrated capabilities to quickly adapt to the present market conditions."