Apple May Be Bigger But Aramco’s Soaring Dividend Is Unmatched

(Bloomberg) — 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.

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

That extra payout alone would be equivalent to Microsoft Corp.’s estimated annual dividend. And while Apple Inc. may be the bigger company with a $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% of the shares directly, with a further 8% held by the kingdom’s sovereign wealth fund.

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

–With assistance from Dorin Ursu and Matthew Martin.