During its meeting held on January 6, 2026, the General Assembly of the Specialized Medical Company (SMC Healthcare) officially approved the Board of Directors’ recommendation to distribute exceptional cash dividends to shareholders with a total value of SAR 200 million, in a move that reflects the company’s strong financial solvency and stable cash flows.
Details of dividend distribution and payment dates
The company clarified in an official statement published on the Saudi Stock Exchange (Tadawul) website on Wednesday that the dividend per share is SAR 0.80, representing 80% of the share's nominal value. The entitlement date for shareholders is set for those who own shares at the close of trading on the day of the General Assembly meeting and are registered in the company's shareholder register at the Securities Depository Center (Edaa) at the end of the second trading day following the entitlement date.
The company confirmed that the dividend distribution process will actually begin on January 15, providing a quick cash return for investors and enhancing their confidence in the company's financial performance.
Restructuring reserves and boosting retained earnings
In a move to strengthen the company's financial position, the General Assembly also approved the Board of Directors' recommendation to transfer the entire statutory reserve balance, amounting to SAR 49.65 million (according to the consolidated annual financial statements ending December 31, 2024, and the preliminary financial statements for the third quarter of 2025), to retained earnings. This strategic accounting measure provides the company with greater flexibility in managing its cash flow, whether for reinvestment in future expansions or to support dividend distributions in upcoming periods, reflecting a management vision aimed at maximizing shareholder value.
Governance and auditing
Regarding governance and financial oversight, the meeting approved the appointment of Deloitte & Touche & Co. as the company's auditors to examine and audit the financial statements for the first quarter of fiscal year 2026. The auditors' fees were set at SAR 140,000, excluding VAT, based on the recommendation of the Audit Committee to ensure the highest standards of transparency and financial disclosure. The meeting also approved amending Article (2) of the company's Articles of Association, which pertains to the company's name.
The context of the healthcare sector in the Kingdom and the impact of the decision
These exceptional distributions come at a time when the healthcare sector in Saudi Arabia is experiencing rapid growth, driven by the goals of Vision 2030, which focuses on improving the quality of healthcare services and enhancing private sector participation. SMC is one of the leading entities keeping pace with this transformation, and the decision to distribute exceptional dividends reflects the company's success in achieving healthy profit margins and managing its costs with high efficiency.
This decision is expected to have a positive impact on the stock's performance on the Tadawul stock exchange, as investors typically view exceptional dividends as a strong indicator of a company's financial health and future stability. Furthermore, converting the statutory reserve into retained earnings sends a reassuring message about the company's ability to withstand economic challenges and provide the necessary liquidity for its operational plans without resorting to excessive borrowing, thus enhancing the stock's appeal to investors seeking regular returns and sustainable growth.
