Sahara Petrochemicals just announced on Tadawul that the board of directors have recommended a cash dividend distribution of SAR0.75/share for FY2016, up 50% Y-o-Y and exactly in line with our forecast. This implies a payout of 97% based on our 2016 EPS forecasts and a dividend yield of 5.6%. The ex-date will be the day following the AGM, which is expected to be held in April 2017.   Overall, we had largely expected a substantial increase in dividends this year given how much the company’s earnings and balance sheet have improved. While this is much higher than consensus forecasts of SAR0.5/share, the stock has already rallied quite substantially in the last few months so we believe this is priced in today and maintain our Neutral rating. (Company disclosure, Yousef Hussieni)   Sahara Petrochemicals: SAR13.21 as of 14 Dec, Rating: Neutral, TP: SAR10.50/share, MCap: USD1,546mn, SPC AB / 2260.SE