Monday, 18 April 2011

Big dividends stage return in the UAE - The National

Generous dividends are back in fashion on local markets, and with them a revived debate about whether such payments are a wise move for companies.

Many companies suspended dividends after the global financial crisis first jolted Gulf bourses at the end of 2008, but this year cash dividends - money distributed to shareholders out of a company's earnings - are again being paid.

In fact the dividend yield, which is the ratio of payouts in dividends each year relative to share price, continues to be higher in this region than in some of the world's major markets.

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