Apple may be bigger but Aramco’s soaring dividend is unmatched

SAUDI Aramco already shells out a dividend that’s worth more than payouts from the next five largest global payers combined. That gap is now set to widen.

The firm’s payouts to the Saudi government and other investors – US$75.8 billion last year and the highest of any listed firm – could increase by more than US$20 billion in 2023, according to Bloomberg Intelligence.

That extra payout alone would be equivalent to Microsoft’s estimated annual dividend. And while Apple may be the bigger company with a US$2.7 trillion market cap, Aramco’s shareholder payouts – excluding buybacks – dwarf all others.

The additional payment means Aramco shareholders will be monitoring oil prices more closely than ever. The Saudi Arabian government owns 90 per cent of the shares directly, with a further 8 per cent held by the kingdom’s sovereign wealth fund.

Morgan Stanley said the move could increase Aramco’s dividend stream by 10 per cent to 20 per cent at current oil prices while RBC Capital Markets forecasts an incremental payout of US$12 billion to US$18 billion. Brent crude has tumbled about 40 per cent from its March 2022 peak, with the selloff intensifying in recent weeks amid fears of an economic slowdown weighing on demand. BLOOMBERG