Salik: Investors pile into share even with near 100% rise - new dividends help

Dubai: The Dubai toll operator Salik is having another good day on DFM, with the share trading 0.76% higher at Dh6.6 – after gaining more than 3% Thursday (August 14).

Salik’s latest financials provided just the boost it needed – along with the fact that it will be paying out Dh770.9 million as first-half 2025 dividend. That’s 10.78 fils a share.

Salik pays dividends twice a year, which will be equal to 100% of net profit available for distribution.

Not that Salik’s share price needs another boost – since January, the Dubai company’s shareholders have seen their values rise by 22.41%. And if one takes a 12-month perspective, Salik’s share is up an eye-popping 99.81%, based on total returns, including dividends.

Salik, which reported Dh1.52 billion in H1-25 revenues, expects the growth story to continue. For 2025 overall, Salik now targets revenue increases of 34%-36% from 2024 levels, against earlier forecasts of 28%-29%.

Variable pricing

It was late January that Salik brought in variable pricing for its peak and off-peak use of toll-gates in Dubai.

“With the visibility we now have into the second-half of the year, we are highly confident in Salik’s future growth, as seen in our revised revenue guidance for 2025,” said Ibrahim Sultan Al Haddad, CEO of Salik. “We remain well-positioned to generate sustained value as we continue to scale, diversify, and innovate across the mobility ecosystem.”

All of which should be getting more investors to come into Salik, even with the near 100% gain in the stock over the last 12 months.

100% dividend payout policy

“With a 100% payout policy and with inflation remaining a concern, Salik - and Parkin - remain near perfect hedges against rising prices,” said Sameer Lakhani, Managing Director at Global Capital Partners. “They have absolute pricing power and the ability to expand market share in the medium-term.”