Abu Dhabi’s utility giant TAQA will become the first UAE listed firm to offer quarterly dividends, as its shareholders approved a new progressive dividend policy for 2020-2022.
Under the approved scheme, dividends for 2020 will be paid using an interim dividend of $0.40 (150 fils) per share, which is due to be paid on 30th December 2020 and a final dividend of $0.27 (100 fils) per share to be paid after the 2021 Annual General Assembly. The 2021 and 2022 dividends will be paid every quarter, making TAQA the first UAE-listed firm to pay dividends quarterly.
The dividend payment will be $0.40 (AED1.50) per share for the first nine months of 2020 ($456 million in total). This payment will be the first component of the full-year 2020 dividend, which is projected to be $0.68 (AED2.50) per share (total of $765 million), which will rise by 10 percent annually for the next two years (2.75 fils per share for 2021 and 3.00 fils per share for 2022).
“We are pleased to begin delivery of TAQA’s new strategic imperatives, which include providing attractive and sustainable shareholder returns through the adoption of a new progressive dividend policy and permitting up to 49 percent foreign ownership of TAQA’s issued capital. These are important steps to diversify the company’s investor base, improve the stock’s liquidity and support the significant efforts of our country’s leadership to encourage foreign capital inflows and position the UAE among the most attractive economies for foreign direct investment.”
The dividend scheme adopted recognizes TAQA’s enhanced scale and developed financial profile. The announcement of the scheme follows the landmark transaction between TAQA and Abu Dhabi Power Corporation (ADPower), whereby most of the power and water generation, transmission, and distribution assets of ADPower were transferred to TAQA.
The assets of the firm, estimated at approximately $51 billion (AED191 billion), are located in the UAE, Canada, Ghana, India, Iraq, Morocco, Oman, the Netherlands, the United Kingdom, Saudi Arabia, and the United States.