Aramco Tempts New Investors With Lure of $124 Billion Dividend
- Saudi Arabia to offer up to $12 billion in oil giant’s shares
- Stock has slumped around 17% since annual high in August
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A top selling point of Saudi Aramco’s plan to offer as much as $12 billion in shares is the chance to reap one of the oil industry’s biggest dividends.
Investors who are willing to look past a steep valuation and the lack of buybacks would cash in on a $124 billion annual payout that Bloomberg Intelligence estimates will give the company a dividend yield of 6.6%. Most of these returns go to Aramco’s biggest shareholder, the Saudi government, which needs the funds to pay for a massive economic transformation plan.