Over 65% of ADX-listed firms pay Dhs22.7b cash dividends

28/02/2017 05:49 AST

A total of 43 out of the 66 public-listed local and foreign companies on the Abu Dhabi Securities Exchange or ADX announced cash dividends worth Dhs22.7 billion in 2016.

The cash dividends paid by the listed companies grew by 9 per cent compared to 2015 when it stood at Dhs20.8 billion.

The number of local and foreign investors, who benefited from cash dividends paid by the domestic listed companies to the tune of Dhs21.7 billion, reached 201,400 last year.

By the end of 2016, ADX general index grew by 5.5 per cent and the volume of trade reached 29 billion shares, a 6 per cent growth compared to 2015, whereas market capitalisation of listed companies reached Dhs475 billion. ADX paid Dhs10.8 billion, around 50 per cent of the total amount, through direct transfer to shareholders’ bank accounts while Dhs10.9 billion were paid through cheques.

“Last year, 65 per cent of the listed companies (domestic and foreign) approved cash dividends to their shareholders. Nearly 43 out of the 66 companies have posted profits totalling Dhs33.7 billion,” said Rashed Al Blooshi, Chief Executive of ADX.

The total number of investors on ADX reached 961,800 by the end of 2016. Al Blooshi said, “The integrated digital services provided by ADX, which made it the first among the region’s exchanges to pay cash dividends directly to shareholders’ bank accounts, aims to ensure a high degree of accuracy and transparency in monitoring and follow-up.

Thus it is important for investors to update their International Bank Account Numbers (IBANs) to ensure accuracy and credibility in receiving their cash dividends.

“The high-yield cash dividend distributions are one of the most important incentives to attract investors. These play an important role in stimulating the liquidity drive on ADX because much of it is pumped into the exchange again,” Al Blooshi added.

“We would like to urge investors to update their contact details and their bank account information, including the International Bank Account Numbers so that they can receive their cash dividends promptly.”

The Gulf Today