Introduction 📌
Dividends are one of the most appealing benefits of investing in the stock market—especially for investors seeking a steady income stream. On the Abu Dhabi Securities Exchange (ADX), several blue-chip and high-performing companies reward their shareholders through consistent and attractive dividend payouts.
But what exactly are dividends? How are they calculated, and how can you take advantage of them? This article answers these questions and walks you through how ADX-listed companies distribute earnings.
What Are Dividends? 💡
Dividends are payments made by a company to its shareholders, typically from its profits. These can be paid in cash or additional shares, and they’re usually distributed quarterly, semi-annually, or annually.
There are two main types:
Cash dividends: Direct money paid to shareholders’ brokerage accounts.
Stock dividends: Extra shares given instead of cash.
Why Do Companies Pay Dividends? 📊
Not all companies pay dividends—but those that do often do so for these reasons:
To attract long-term investors
To signal financial health and stability
To share profits with shareholders rather than reinvesting all of them
To build investor loyalty, especially in sectors like banking, energy, and telecom
On ADX, dividend-paying companies include Etisalat by e&, First Abu Dhabi Bank, and ADNOC Distribution, among others.
How Are Dividends Declared on ADX? 📅
Each company on ADX follows a transparent dividend declaration process:
Board Recommendation: The board of directors proposes a dividend amount.
Shareholder Approval: During the annual general meeting (AGM), shareholders vote.
Declaration Date: The official announcement is made.
Ex-Dividend Date: You must own the shares before this date to be eligible.
Payment Date: The funds or shares are distributed to eligible investors.
Investors can find these announcements in the ADX Disclosures section or receive alerts via the ADX Mobile App.
Recent Trends in Dividend Yields on ADX 📈
Some of the most consistent dividend-payers on ADX in recent years include:
Etisalat by e& – Strong, stable returns over a decade
FAB (First Abu Dhabi Bank) – Balanced payout despite growth focus
ADNOC Distribution – Gradually increasing dividends to support income investors
ADX also offers Dividend Reports and insights in its investor tools, summarizing historical and upcoming payouts across sectors.
How ADX Helps You Track Dividends 📲
ADX offers tools and services that help investors stay informed:
ADX Mobile App – Real-time updates on dividend announcements
Investor Relations Pages – Each company’s IR section on ADX contains historical data
ADX Alerts & Newsletter – Stay ahead of ex-dividend dates and AGMs