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Riyadh Steel Co. shareholders approved a 5% cash dividend for 2025, amounting to SAR 0.05 per share, during an extraordinary general meeting on June 8. The total dividend payout will be SAR 3.5 million from the company's SAR 70 million capital. Shareholders also authorized the board to distribute interim dividends semiannually or quarterly in 2026. The record date for the 2025 dividend is June 8, 2026, with payments due within 15 working days afterward.
This decision reflects the company's commitment to returning value to shareholders while maintaining financial flexibility. The approval of interim dividends suggests confidence in future cash flow generation. For investors, this reinforces Riyadh Steel's position as a reliable income-generating stock in the Tadawul market. The dividend yield of 5% is competitive compared to other industrial sector stocks in Saudi Arabia.
The move could attract income-focused investors seeking stable returns, potentially boosting the stock's liquidity. Traders should monitor the company's quarterly earnings reports for signs of sustained profitability. Additionally, the authorization for interim dividends may lead to more frequent shareholder updates, which could influence short-term price volatility.
