STC sets new dividend policy as of Q4 2018

Saudi Telecom Co.’s (STC) board of directors today approved a three-year dividend policy as of Q4 2018, the telecom operator said in a bourse filing.

The new dividend policy is subject to the approval of the upcoming general meeting.

According to the new policy, STC will pay a fixed minimum dividend of SAR 1 a share per quarter for the next three years as of Q4 2018.

The telco will also consider paying additional, one-off dividend, subject to the board approval, assessment of financial situation, outlook and capital expenditure requirements. This one-off dividend may differ on a quarterly basis, based on the company’s performance.

The dividend payout policy may be changed in line with any material change in the company’s strategy and business profile (including the business segment); laws as well as regulations applied in the market; and any liabilities or dues owed to financing or banking entities or the requirements of credit agencies.