Kingdom Holding to pay its first annual cash dividend
Saudi investment firm Kingdom Holding plans to pay its first annual cash dividend from accumulated retained earnings, amounting to $146.7 million.
December 18, 2010 3:06 by Reuters
Saudi investment firm Kingdom Holding plans to pay its first annual cash dividend from accumulated retained earnings, amounting to 550 million riyals ($146.7 million), it said in a statement on Saturday.
Shares in Kingdom Holding, which are 95 percent owned by its Chairman Prince Alwaleed bin Talal, jumped 4 percent in early trading. Shares reached 8.10 riyals by 08:27 GMT.
“The cash dividend represents a payment of 5 percent of capital or 50 Halalas per share to the public shareholders,” the firm said in an emailed statement.
“With a dividend yield of 6.4 percent 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,” it said.
Kingdom Holding made a net profit of 160 million riyals in the third quarter, rising 52.6 percent from the same period a year earlier.
The firm attributed the gain to a better performance of affiliated firms. Kingdom Holding has minority stakes in some of the world’s top companies, the most valuable of which is Citigroup .
In November, Kingdom Holding announced that it subscribed $500 million, along with its chairman Prince Alwaleed, to General Motors’ initial public offering.
(Reporting by Asma Alsharif; Editing by Miral Fahmy)