Dubai: The Emaar stocks rocked up with near 15% gains on DFM after the first 90 minutes of trading, with investors buoyed by the Dubai property developer confirming a steep dividend hike.
The parent entity, Emaar Properties, is at Dh11 from a 14.7% upswing, while Emaar Development, which is the entity overseeing the UAE operations, bustling along at Dh13.7, up 14.64%. The DFM has a 15% 'trade limit' on the upside, which is the maximum a stock can go up by in a trading session.
“If the sentiments continue, Emaar could well be among the Top 3 performing stocks on DFM for 2024,” said an analyst. “Most investors were not expecting such a steep dividend hike, even though the developer has been putting out new highs in recent quarters.
“And that’s propelling the stocks’ performance today.”
Last Friday (December 13), the developer confirmed the decision to 'distribute 100% of its share capital as dividends for 2024', amounting to Dh8.8 billion ($ 2.4 billion).
In 2023, the dividend payout was Dh0.5 a share.
"This is a 100% increase in dividend paid for 2023 of Dh4.4 billion," said a statement. "This significant milestone reflects Emaar's robust financial performance and dedication to investor satisfaction."
The 2024 dividend distribution will result in the 'total value of initial investments' growing almost four times since the company's inception'.
"We're thrilled to see our early investors realise returns that have multiplied four times," said Mohamed Alabbar, founder of Emaar Properties.
The company reported revenues of Dh50 billion - and equally importantly, a sales backlog in the region of Dh100 billion at the end of the first nine months of 2024.
More to follow...
