Saudi Telecom Company (stc) has confirmed it will proceed with its fourth-quarter 2025 dividend payment, even after reporting a 40 percent year-on-year drop in annual net profit.
The company announced a dividend distribution of SAR2.7 billion, equivalent to 5.5 percent of capital, for the quarter ended December 2025. This brings the total dividend payout for the year to nearly SAR11 billion. The number of shares eligible for dividends stands at approximately 4.9 billion.
The payout aligns with stc’s previously announced three-year dividend policy, introduced in August 2024. Under the policy, the company committed to distributing SAR0.55 per share quarterly from Q4 2024 through Q3 2027, providing shareholders with predictable and stable returns.
stc reported net earnings of SAR15 billion for 2025, down from SAR25 billion in the previous year. The decline was largely attributed to the absence of a one-off gain recorded in 2024, when the company booked SAR14 billion from discontinued operations following stake sales in two subsidiaries to Saudi Arabia’s Public Investment Fund.
Despite the earnings decline, the continued dividend payout signals management’s confidence in the company’s underlying cash flow strength and long-term financial stability. The move also reinforces stc’s positioning as a defensive, yield-focused telecom stock within the Saudi market.
The company’s shares have risen 4.2 percent so far this year, reflecting investor confidence in its dividend policy and strategic direction.
