HRH Prince Alwaleed bin Talal bin Abdulaziz Alsaud, Chairman of Kingdom Holding Company (KHC), announced today that pursuant to the resolution of the board of directors, the Company intends to initiate its first annual cash dividend of SR550 million out of accumulated retained earnings. The cash dividend represents a payment of 5% of capital or 50 Halalas per share to the public shareholders. With a dividend yield of 6.4% to the public shareholders based on current market price, this reflects a move in the Company’s strategy to start distributing cash back to its shareholders as the Company continues to experience improving results on the path of continuous profitability through its sound strategic plan.
The KHC Board included Eng. Talal Al Maiman, Executive Director for Development and Domestic Investments and Member of the Investment Committee, Eng. Ahmed Halawani, Executive Director for Private Equity, International Investments and Member of the Investment Committee, Mr. Sarmad Zok, Executive Director of Hotel Investments and Member of the Investment Committee, Mr. Saleh Al Sagri, Dr. Khaled Al-Saheem and Mr. Taher Agueel.
The Board meeting was attended by Mr. Shadi Sanbar, KHC’s CFO and Member of the Investment Committee and Mr. Ali Tabbal, Deputy CFO.
Moreover, Prince Alwaleed as the 95% shareholder of the Company, will only receive 13 Halalas per share per year, thereby giving up his full entitlement of the share of the dividends distribution to allow the Company to distribute to the public shareholders annual dividends that are not less than the 5% of capital. The cash dividend will be payable to shareholders of record in four quarterly payments of 12.5 Halalas each quarter.
HRH Prince Alwaleed said “Today’s announcement represents a milestone in the Company’s history. The continuity of our dividend distribution is part of Kingdom Holding’s strategic plan. It is based on our confidence that Kingdom Holding will continue to generate ample profits and cash to invest in the growth of our business and its commitment to continue to pay dividends in the future.”