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Types of dividend distribution of companies' shares in the Saudi market

Napsal: čtv lis 14, 2024 11:56 pm
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When the investor chooses the best company that distributes dividends in the Saudi market, whether his choice is the result of studying and analyzing the shares of major companies in the Saudi market or through the information provided by various trading platforms about companies' profits and their distribution dates, the next step is to know the types of dividends that each company adopts, as not all companies rely on distributing cash dividends to shareholders, but profits can be distributed in different ways as follows:
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Distributing the profit share to shareholders' bank accounts directly via bank transfer.
Supplementary profit returns, which are the returns that the investor can obtain when adding additional payments to the fixed return.
Bonus: It is the profit return that the company distributes to shareholders in the event of obtaining a set of unusual advantages.
Additional shares: Some companies tend to distribute profit shares to shareholders in the form of additional free shares added to their basic share in the company's shares.

Some companies rely on distributing shareholders' profits in two parts, the first part being cash and the second part being in the form of free shares added to investors' shares. When the company distributes cash profits, there are two options: the first is to pay the profits through securities owned by shareholders, or to work on increasing the capital through subscription rights, which are in favor of each shareholder who owns shares in the company.

In the case of distributing profits in the form of additional shares, several alternatives are available to shareholders, so that each shareholder chooses what suits him, such as receiving the shares and adding them to his investment portfolio directly, or selling the shares to the company in exchange for a sum of money agreed upon between the two parties, or offering the shares for sale on the stock exchange.