Saudi Aramco Base Oil Company - Luberef Ex-Dividend Date Looms

Investors have three days left to purchase Saudi Aramco Base Oil Company - Luberef (TADAWUL:2223) before it goes ex-dividend on October 4th.

The company is set to pay out ر.س4.00 per share in dividends, following a total payout of ر.س4.50 per share over the last year.

Based on the current stock price of ر.س129.30, this translates to a trailing yield of 3.5%.

However, analysts have raised concerns about the sustainability of Saudi Aramco Base Oil Company - Luberef's dividend payments, citing that they were not well covered by profits last year.

In fact, the company paid out 91% of its profits as dividends to shareholders, suggesting the dividend is not reliable. Fortunately, from a cash perspective, it only used 40% of its free cash flow in the past year.