STC commits to an attractive dividend payout and as a landmark initiative, has announced a three years dividend policy
The Board of Directors of Saudi Telecom Co., in their meeting have approved the company’s dividend policy for three years starting from the 4th quarter 2015. The dividend policy as approved by the board of directors remains subject to the ratification by the next General Assembly Meeting which will be announced later. The dividend policy’s objective is to maintain a minimum level of dividend per share in Saudi Riyal terms on quarterly basis. Dividends distributions for the next three years will therefore be in line with this dividend policy.
The dividends policy will remain subject to:
- The material changes in the strategy and business of the company (including the business environment it operates in);
- Laws and regulations that are applicable on the company; and
- Any banking, other funding or credit rating covenants that the company may be bound to from time to time
STC commits to pay a fixed quarterly dividend of a minimum of SR 1 per share. Further, the company will consider and pay additional dividend on quarterly basis subject to the Board’s assessment and determination of the Company’s financial situation, outlook and capital expenditure requirements. Additional dividends are likely to vary quarter on quarter depending on company performance.