Acwa Power Locks 4.6% Dividend Hike Through 2030

The company's net income rose 12% in 2024 to 1.9 billion riyals, driven by higher revenue from new plants and lower financing costs. Acwa ended the year with 7.8 billion riyals in cash and equivalents, enough to cover the 2025 dividend roughly 2.5 times.

Acwa shares trade on the Saudi Stock Exchange at about 140 riyals, giving the stock a dividend yield of roughly 1.3% at the proposed payout. The yield is low relative to Saudi utility peers, the multiyear commitment provides income visibility that most regional developers do not offer.

The 2030 payout plan aligns with Acwa's project pipeline, which includes the 4-gigawatt Hassyan power plant in Dubai and a green hydrogen facility in NEOM. Both are scheduled to begin commercial operations before the end of the decade, adding cash flows that would support the dividend floor.

Acwa's dividend policy is subject to shareholder approval at the annual general meeting. No date has been set for the vote.