
The dividend yield of Aramco is a crucial factor to consider for investors. It's a measure of the ratio of the annual dividend payment to the stock's current price.
Aramco's dividend yield can be calculated by dividing the annual dividend payment by the stock's current price. For example, if Aramco pays an annual dividend of $10 per share and the stock price is $100, the dividend yield would be 10%.
The dividend yield is an important consideration for investors because it can indicate the potential return on investment. A higher dividend yield may suggest a more attractive investment opportunity, but it's essential to consider other factors as well, such as the company's financial health and growth prospects.
Aramco's dividend yield is influenced by its payout ratio, which is the percentage of earnings paid out as dividends. A lower payout ratio may indicate a more sustainable dividend payment, but it also means that the company is retaining less of its earnings for future growth.
Aramco Dividend News
Aramco is on track to pay a record-breaking dividend of $124 billion this year, a 30% increase from last year.
The company's quarterly dividend is $31 billion, which will be paid to its shareholders, including the Saudi government.
The Saudi government controls more than 81% of Aramco, making it a crucial source of income for the kingdom.
Aramco's dividend includes a base payout of $20.3 billion and a performance-linked one of $10.8 billion.
The Saudi government and the kingdom's sovereign wealth vehicle, the Public Investment Fund, are the main beneficiaries of the dividend, holding stakes of roughly 81.5% and 16% in the company.
Aramco's dividend is a vital source of income for the Saudi government as it undertakes a multitrillion-dollar overhaul of its economy.
Here are the details of Aramco's dividend:
Aramco's dividend is a key factor in the company's financial performance, and its quarterly dividend of $31 billion is a significant commitment to its shareholders.
Dividend Details
Saudi Aramco's dividend yield is a significant aspect of its investment appeal. The company has a current yield of 6.82% (Example 1) and is well-covered by earnings.
The dividend yield is a crucial factor for investors, especially those seeking regular income from their investments. Saudi Aramco's dividend yield has been steadily increasing, with a 30% growth expected this year to a record high of $124 billion (Example 2).
The company's dividend payout is substantial, with a quarterly dividend of $31 billion (Example 2). This payout is a significant source of income for the Saudi government, which controls more than 81% of the company.
Saudi Aramco's dividend includes a base payout of $20.3 billion and a performance-linked payout of $10.8 billion (Example 4). The company's dividend is maintained despite a 15% drop in net profit in the third quarter (Example 4).
Here are the key dividend details:
- Current yield: 6.82% (Example 1)
- Record high dividend payout: $124 billion (Example 2)
- Quarterly dividend: $31 billion (Example 2)
- Base payout: $20.3 billion (Example 4)
- Performance-linked payout: $10.8 billion (Example 4)
Saudi Aramco's dividend yield and payout are attractive features for investors, making it a compelling investment opportunity.
Financial Performance
Saudi Aramco's financial performance is a key aspect of its dividend yield. The company's net income for the three months to the end of June fell to $29bn, down from $30bn in the same period a year earlier.
Aramco's profits were dented over the second quarter after the company sold less crude and reported weaker margins from its refinery business. Lower global oil prices, weaker demand, and prolonged OPEC+ production cuts led by Saudi Arabia have continued to impact crude prices.
The company's share price has tumbled by 19% this year, underperforming global oil supermajors. Oil prices have tumbled this year amid concern over global economic growth.
Here's a breakdown of Aramco's dividend payouts:
- Aramco will pay a quarterly dividend of $31bn.
- The dividend includes a base payout of $20.3 billion and a performance-linked one of $10.8 billion.
Aramco's dividend includes a base payout of $20.3 billion and an atypical performance-linked one of $10.8 billion. The Saudi government and the kingdom's sovereign wealth vehicle, the Public Investment Fund, are the main beneficiaries of the dividend, holding stakes of roughly 81.5% and 16% in the company.
Dividend Criteria and Checks
When evaluating dividend-paying companies, it's essential to check the dividend criteria. Saudi Arabian Oil is a company that meets this criterion with a current yield of 6.82%.
A well-covered dividend is crucial for long-term sustainability. Saudi Arabian Oil's dividend is well covered by earnings.
A high dividend yield is attractive, but it's not the only factor to consider.
Dividend Criteria Checks
Dividend criteria checks are crucial to ensure a company's dividend sustainability.
A good dividend yield is essential, and Saudi Arabian Oil's current yield of 6.82% is certainly attractive.
However, it's also important to check if the dividend is well covered by earnings.
Saudi Arabian Oil is a great example of this, as its dividend is well covered by earnings.
Dividend Criteria Checks 3/6
Dividend Criteria Checks 3/6 are crucial in evaluating dividend-paying companies.
Some companies, like Saudi Aramco Base Oil Company - Luberef, have a current yield of 6.34%.
A dividend yield of 6.34% is significantly higher than the average yield of many other companies.
This high yield indicates that the company is paying out a substantial portion of its earnings as dividends.
Analyst Insights
Analysts expect Aramco's dividend yield to remain attractive, considering the company's strong cash flow generation and low payout ratio.
Aramco has a history of increasing its dividend payout, with a 5-year CAGR of 10.3% as of 2022.
The company's low payout ratio of 21.1% in 2022 indicates a stable dividend policy.
Aramco's high dividend yield is also driven by its strong cash flow generation, with a free cash flow margin of 44.1% in 2022.
Frequently Asked Questions
What is the total dividend of Saudi Aramco?
Saudi Aramco expects to declare total dividends of $124.3 billion in 2024. This payout includes performance-linked dividends and other payments to the Saudi government.
Sources
- https://www.bloomberglinea.com/english/aramco-hikes-dividend-payout-to-government-investors-despite-profit-plunge/
- https://simplywall.st/stocks/sa/energy/sase-2222/saudi-arabian-oil-shares/dividend
- https://www.theguardian.com/business/article/2024/aug/06/saudi-aramco-dividends-profits
- https://www.cnbc.com/2024/11/05/oil-giant-saudi-aramco-posts-15percent-drop-in-third-quarter-profit-but-maintains-dividend.html
- https://simplywall.st/stocks/sa/materials/sase-2223/saudi-aramco-base-oil-company-luberef-shares/dividend
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