Sime Darby keeps dividend promise in focus

KUALA LUMPUR: Sime Darby Bhd is reaffirming its reputation as an attractive dividend investment, with a solid history of redirecting significant earnings to shareholders while retaining capacity for future expansion. Upholding regular and dependable shareholder returns remains a core focus for the group, with its strategy to distribute at least 50% of net earnings annually consistently upheld.

This pledge was clearly demonstrated in FY2025 when Sime Darby announced total dividends of 14 sen per share, leading to a RM954 million payout, accounting for 82% of its core net profit and a dividend yield of 6.7%. According to Sime Darby Group Chief Executive Officer Datuk Jeffri Salim Davidson, the company has a well-established track record of paying dividends.

The group also perceives its dividend policy as an essential component of the government's GEAR-uP agenda, given PNB's pivotal role as a significant shareholder. Through dividends to PNB, Jeffri explained, the collective value generated by the group ultimately benefits millions of unit holders. The company may also contemplate special dividends arising from the sale of non-core assets, although this will be carefully balanced against the necessity to reinvest in core businesses to sustain long-term growth.

Jeffri added, "We may also consider paying special dividends from the sale of our non-core assets, while ensuring we continue to reinvest for long-term growth." This flexibility enables Sime Darby to return surplus capital to shareholders without undermining its long-term investment strategies. Apart from dividends, Sime Darby also allocates a portion of its value creation to social impact via Yayasan Sime Darby, which supports education, community development, environmental initiatives, and sports.

The group emphasized its overarching goal of remaining a resilient and responsible Malaysian multinational capable of delivering sustainable returns while contributing positively to the communities in which it operates.