stc announces dividends distribution policy for 3 years; commits SAR 1/share a quarter

Logo of stc

The board of directors of stc approved, in a meeting held today, Sept. 27, the three-year dividend policy, starting Q4 2021, the telecom operator said in a bourse filing.

The new dividend policy is subject to the approval of the upcoming general assembly meeting, which will be announced later.

The objective of the dividend policy is to maintain a minimum level of dividend per share on quarterly basis.

According to the new policy, stc will pay a fixed dividend of SAR 1 a share per quarter for the next three years.

Further, the company will consider paying additional dividend, subject to the board of directors' recommendation to the general assembly, after the assessment of the company's financial situation, future outlook and capital expenditure requirements.

Additional dividends are likely to vary on quarterly basis depending on the company’s performance.

The dividends policy will remain subject to change, based on the following:

- Any 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.

- Any banking, other funding or credit rating covenants that the company may be bound to follow from time to time.