Saudi telco STC approves three-year dividend policy

Reuters

Saudi Arabia’s STC Group has announced its new three-year dividend policy, committing a payout of SAR0.55 ($0.15) per share every quarter, starting in Q4 2024 and running until Q3 2027.

The decision is subject to approval by the shareholders and the date of the general assembly will be announced soon.

The telecom operator may consider paying special dividends after assessing its financial position, future outlook, strategic investments and capital expenditure requirements, it said in a statement to the Saudi exchange.

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In February, STC proposed a special dividend for 2023 after the company’s profit rose 9 percent year on year.

The proposed special dividend payout will total almost SAR5 billion or SAR1 per share, subject to shareholders’ approval.

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In addition, the company announced a cash dividend of SAR2 billion, or SAR0.4 per share, for the fourth quarter of 2023.

The total STC dividend distribution will reach SAR2.60 per share, representing 26 percent of the stated value per share following the approval of a special cash dividend.

The company’s net profit rose 8 percent year on year to SAR6.6 billion in the first half of 2024 as revenue grew 5 percent annually to SAR38 billion. The second-quarter bottom line grew 10 percent year on year to SAR3.3 billion.