BofA Expects Dewa to Boost Dividend Payout in FY27; Buy Rating Maintained

06:47 AM EDT, 09/10/2026 (MT Newswires) -- BofA Global Research forecasts that Dubai Electricity and Water Authority (DFM:DEWA), d/b/a Dewa, will raise its dividend payout in full-year 2027, backed by the electric and water services company's "regulated and resilient business model." In a note focused on the oil and gas and utilities sector in the Middle East and North Africa, the research firm said Wednesday it forecasts a 10% increase in dividends to 6.8 billion Emirati dirhams from 6.2 billion dirhams in 2027, implying a 4.9% yield, after the company's current fixed-dividend framework expires at the end of 2026. Describing Dewa's dividend sustainability as risk-free, analysts highlighted that payouts are fixed rather than tied to payout ratios, supported by "substantial" cash generation and expectations of a sustained debt-free standalone balance sheet. For 2027, the research firm projects free cash flow to reach 6.6 billion dirhams. In the same report, BofA trimmed its 2026 and 2027 EBITDA forecasts to reflect the company's second-quarter earnings. Within this context, the research firm affirmed the stock's buy rating and price objective of 3.30 dirhams.