Yanbu National Petrochemical Company (Yansab) announced that its board of directors (BoD) has proposed a dividend of SAR1.5/share for 1H2016, up 50% Y-o-Y and in line with our forecast (we forecast SAR3/share for 2016). This implies a dividend yield of 7.5% and a payout ratio of 96% based on our 1H16 EPS forecasts. The ex-div date will be 16 June 2016, and the distribution date will be 30 June 2016.   We expect the stock to react quite positively to the announcement, given: i) the large increase Y-o-Y (50%); ii) the fact that the stock would be offering a yield of 7.5%, the highest in the Saudi petchem space, in our view (most of the stock we cover trade in the 6-7% range); and iii) we believe the dividend was much higher than market expectations (Bloomberg consensus forecast of cSAR2.1/share for FY2016). We maintain our Buy rating on the name. (Company disclosure, Yousef Husseini)   YANSAB: SAR39.85 as of 30 May 2016, Rating: Buy, FV: SAR47.00 per share, MCap: USD5,978 million, YANSAB AB / 2290.SE